In the February 17, 2015 issue of the Federal Register (80 FR 8243, click here) the Department of Housing and Urban Development (HUD) announced the 2015 points and fees threshold for FHA qualified mortgages by adopting the Consumer Financial Protection Bureau’s August 14, 2014 final rule amending the qualified mortgage points and fees limit for 2015 (see our August 19, 2014 memorandum, click here). HUD’s February 17, 2015 announcement clarifies that all adjustments to the CFPB’s qualified mortgage points and fees limit consistent with 12 CFR 1026.43(e)(3)(ii) are to be incorporated into HUD’s points and fees limit for FHA qualified mortgages, the effective date of the CFPB’s adjustment, including the CFPB’s August 14, 2014 adjustment, to-wit: The new points and fees limit, effective January 1, 2015, requires that for a covered transaction to be a qualified mortgage the total points and fees must not exceed 3 percent of the total loan amount for a loan greater than or equal to $101,953; $3,059 for a loan amount greater than or equal to $61,172 but less than $101,953; 5 percent of the total loan amount for a loan greater than or equal to $20,391 but less than $61,172; $1,020 for a loan amount greater than or equal to $12,744 but less than $20,391; and 8 percent of the total loan amount for a loan amount less than $12,744. The above threshold adjustments are effective January 1, 2015, and will require updates to your software calculations for FHA qualified mortgages closing on and after the effective date.
