23.03.2023 - 01:21

The VA has stated that loans made in compliance with VA standards and guaranteed or insured by the VA are: A. Small creditor qualified mortgages B. Safe harbor qualified mortgages C. Non-qualified mortgages D. Exempt from qualified mortgage standards

The VA has stated that loans made in compliance with VA standards and guaranteed or insured by the VA are:

A. Small creditor qualified mortgages

B. Safe harbor qualified mortgages

C. Non-qualified mortgages

D. Exempt from qualified mortgage standards

Answers (1)
  • artimissimo
    March 31, 2023 в 18:08

    The correct answer is D. Exempt from qualified mortgage standards.

    When the VA guarantees or insures a loan, it exempts that loan from qualified mortgage standards. This means that lenders do not need to adhere to the stringent requirements set forth by the Consumer Financial Protection Bureau's Ability-to-Repay/Qualified Mortgage (ATR/QM) rule. These requirements include verifying a borrower's ability to repay the loan and meeting specific debt-to-income (DTI) ratio limits.

    This exemption is due to the fact that the VA has its own underwriting standards and guidelines, which provide additional protections to veterans and their families. The VA guarantees a portion of the loan, which reduces the risk for the lender and allows them to offer more favorable terms and rates to eligible borrowers.

    Therefore, loans made in compliance with VA standards and guaranteed or insured by the VA are exempt from qualified mortgage standards, making them an attractive option for veterans and their families looking to purchase a home.

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