Compliance – QM Test Failing Over MI: We have a high-balance conventional loan failing QM due to borrower-paid single premium. Any ideas for how to cure that?
Answer: You are running into this issue because borrower-paid single MI is included in the points and fees cap. Borrower-paid monthly MI or Lender-paid MI is not included in the points and fees cap. If the borrower is paying the MI outside of monthly, then we can only suggest switching over to a Split Premium type product [...]