QM Programs

What It Actually Means To Have A Qualified Mortgage?

A qualified mortgage is the one that fulfills some specific requirements for secondary market trading and lender protection. These requirements are, as suggested by the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010.
The provisions set by this reform are meant to ensure the protection of both borrowers and lenders from all sorts of risks involved in the lending practices.

Working Of The Qualified Mortgages

Qualified Mortgages demand certain requirements from the borrowers. First things first, the borrower’s capability to repay the loan is analyzed before the loan is taken out. This is commonly called the “ability-to-repay” rule, and it is evaluated through the borrower’s assets, debts, and income.

Qualifications For A Qualified Mortgage

– Some Risky Loan Features Are Prohibited

There are some loan features that you do not get in the case of a mortgage loan. This includes an “interest-only” period, negative amortization, and balloon payments.

– No Excess Upfront Fees and Points

Your lender cannot charge you by exceeding the limits on the amount of up-front fees and points.

– Legal Protection for Lenders

In the case of a qualified mortgage, the lender gets some legal protections in case of defaults after presenting that you had the capability to pay back the loan. Safe harbor provisions safeguard the lenders in case of any lawsuits by distressed borrowers. However, such a situation can be challenged by the borrower. No worries when you are securing your loan through WGB Loans. We do our best to minimize the chance of any difficulties you may face later on.

Understanding loan qualifications is never easy unless you have someone like WGB loans by your side. Connect with us, and you’ll be surprised at how easy we make the loan process for you.

How Does WGB Loans Help?

WGB Loans is a rising name in the field of qualified mortgages. Our loan solutions are well-structured and involve minimum steps. We offer qualified mortgages by simplifying every stage and keeping every detail transparent. Our people know how to explain the loan, its processes, and its possible outcomes clearly and help you choose the right qualified mortgage plan as per your specific needs. We try to save much of your legwork in the documentation. All in all, we aim to show o a direction and walk with you throughout the process.