QM – QUALIFIED MORTGAGE LOANS AND ABILITY TO REPAY. (1) 3% points and fees cap for loan amounts greater than $100,000. (2) maximum debt-to-income ratio of 43%. (3) no negatives features such as negative amortization, balloon payments & interest only. (4) maximum 30-year loan term. WHAT IS ABILITY TO REPAY? (a) income and asset verification, (b) employment, (c) monthly mortgage payments, including subordinate liens, (d) all monthly mortgage-related debt, such as taxes, insurance, etc., (e) verification of all monthly debts and liabilities, including alimony and child support, (f) DTI or residual income, (g) credit history. MORE IN A DAY OR SO!