United Guaranty Corp. has unveiled a line of products that will make it easy to comply with new Qualified Mortgage regulations well ahead of the implementation date.
The Consumer Financial Protection Bureau previously announced that the QM and Ability to Repay rules become effective on loans originated on or after Jan. 10, 2014.
The new rules from the CFPB establish maximum points and fees, including the cost of insuring residential loans.
In Bulletin CA2013-08, United Guaranty introduced its new QMI product.
According to the Greensboro, N.C.-based company, the new product line eliminates the guesswork related to mortgage insurance when calculating maximum points and fees.
Quote options for QMI include borrower-paid monthly premiums and refundable borrower-paid single premiums.
They also include all lender-paid mortgage insurance plans that reflect mortgage insurance costs in the interest rate.
“According to QM regulations, when private M.I. is refundable, you may exclude up to the cost of FHA up-front M.I. (currently 1.75 percent) when calculating maximum points and fees,” United Guaranty said. “Borrower-paid single premium up to 1.75 percent is not included in the maximum allowable fee calculation.”
United Guaranty said that its QMI products are available on Aug. 12.