Agoura Hills, Calif.-based compliance and risk mitigation solutions provider Interthinx says the qualified mortgage (QM) test in its PredProtect Regulatory Compliance Automation Suite will be available in early October.
Created by the Dodd-Frank Act, the new QM rule provides a safe harbor from borrower accusations that an originator has failed to comply with the new ability-to-repay rule. As a result, beginning Jan. 10, every residential mortgage transaction will need to be identified as a safe harbor QM, rebuttable presumption QM or non-QM loan. The test will provide clients with test access 90 days before the Consumer Financial Protection Bureau's rule-enforcement date, according to the company.
The PredProtect QM test also includes requirements such as the 3% fee cap, 43% debt-to-income ratio test on non-eligible loans and higher-priced mortgage loan thresholds in order to determine whether a loan qualifies for safe harbor or rebuttable presumption QM protection, according to Interthinx.
"Interthinx prioritized the build-out of its QM tests in PredProtect so that on New Year's Eve, PredProtect customers will be ringing in 2014 instead of wringing their hands over QM,’ says Jeff Moyer, president of the company.