Getting Passed QM

The new Consumer Financial Protection Bureau (CFPB) QM rules are here, and they are here to stay. You can’t ignore them. You have to comply with them. In most cases though, the bulk of the compliance burden has fallen on the various LOS players. The strong LOS will use this as an opportunity to innovate. Here’s one example:

LendingQB, a provider of end-to-end loan origination software (LOS), announced the release of the Qualified Mortgage (QM) functionality within its platform, which is compliant with the CFPB. The QM functionality checks the limits on loan features, auto checks for points/fee caps, verifies test performances and calculation results for underwriting requirements. LendingQB enables:

>> Workflow restrictions and business rules can be applied to a loan to prevent progression of ineligible loans based on its QM results.

>> QM status is validated by LendingQB third party compliance vendors. For example, lenders can add QM lending policies within the compliance engine integration in LendingQB’s platform.

>> Loan originators can view preliminary QM status to avoid submission of non-compliant loan programs and rate options. A QM column added to the PriceMyLoan pricing engine and loan certificates corresponds with provisional QM eligibility status.

“With the new QM release, LendingQB demonstrates dedication to the compliance aspect of its Lean Lending strategy,” said Binh Dang, LendingQB president. You see, QM might actually prompt some great industry advancement.

About The Author


Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at