What condition yields Qualified Mortgage safe harbor?

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Multiple Choice

What condition yields Qualified Mortgage safe harbor?

Explanation:
Qualified Mortgage safe harbor comes from making a loan that satisfies both the ability-to-repay (ATR) requirement and the specific QM rules. When a loan truly meets ATR and also conforms to the QM standards (such as limits on points and fees and other prohibitions on risky terms), the lender is protected from liability for ATR violations. Simply being a fixed-rate loan or being a jumbo/non-conforming loan does not by itself guarantee safe harbor; the protection hinges on meeting ATR and the QM criteria.

Qualified Mortgage safe harbor comes from making a loan that satisfies both the ability-to-repay (ATR) requirement and the specific QM rules. When a loan truly meets ATR and also conforms to the QM standards (such as limits on points and fees and other prohibitions on risky terms), the lender is protected from liability for ATR violations. Simply being a fixed-rate loan or being a jumbo/non-conforming loan does not by itself guarantee safe harbor; the protection hinges on meeting ATR and the QM criteria.

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