Beginning April 1, 2019, CBC Mortgage Agency will require all FHA QM Rebuttable Presumption loans to include a Residual Income Worksheet prior to CBC’s purchase of the loan. Any loan with an application date on or after April 1, 2019 must include this document in the loan file.
Rebuttable presumption qualified mortgages under Title II of the National Housing Act are loans that meet the points and fees limit adopted by the CFPB in its regulation at 12 CFR 1026.43(e)(3), but has an annual percentage rate that exceeds the average prime offered rate for a comparable mortgage as of the date the interest rate is set, by more than the sum of the annual mortgage insurance premium and 1.15 percentage points for a first-lien mortgage. Borrowers who are unable to meet the residual income requirements will be ineligible for assistance on Chenoa Fund programs.
Correspondent lending partners may use their own form or the CBC Mortgage Agency Residual Income Worksheet included with this announcement which is also available for download on our website chenoafund.org.« 19-03: Mortgage Insurance Coverage & Lock Policy