Federal Mortgage LawsQuestion 62 of 400
For a Qualified Mortgage of $100,000 or more, the total points and fees generally may not exceed what percentage of the total loan amount?
a.3 percent
b.5 percent
c.8 percent
d.10 percent
Explanation
For a QM with a loan amount of $100,000 or more (thresholds are adjusted annually for inflation), total points and fees generally cannot exceed 3% of the total loan amount. Smaller loans are allowed higher percentage caps because fixed costs are a larger share. Exceeding the applicable cap disqualifies the loan from QM status and its liability protections.
Law Reference: Ability-to-Repay/Qualified Mortgage Rule (Reg Z 1026.43)Practice all 400 questions free — no signup required.
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