Lenders can get a jump on compliance with the new qualified mortgage rule with a test from mortgage technology vendor Interthinx.
Interthinx will introduce a qualified mortgage test to its PredProtect regulatory compliance automation suite in early October, according to a Monday press release. This will give lenders access to the test a full 90 days before the QM rule, created as part of the Dodd-Frank Act, comes into effect.
The test aims to help lenders ensure that their loans comply with the new regulation, which caps borrowers' debt-to-income ratios at 43% and mandates that added fees and points not exceed 3% of the mortgage value, among other requirements.
"Mortgage technology vendors are taking widely different approaches to automating compliance checks for QM and the Home Ownership and Equity Protection Act (HOEPA) rule," Roger Fendelman, Interthinx vice president of compliance, said in the release. "Some vendor solutions do not handle complete QM decisioning, while other companies are waiting until later in the year to release their tests. Year-end holidays run from mid-November to New Year's Day, and with so many originators' internal processes dependent on their vendor's ability to deliver, it's imperative that these tests be made available at least 90 days before the enforcement date."
Interthinx, a subsidiary of Verisk Analytics, is based in Agoura Hills, Calif.