QM Points-and-Fees Cap Calculator

Evaluate loan points and fees against CFPB Qualified Mortgage caps (12 CFR 1026.43(e)(3))

1. Loan Information
2. Cap Tiers (Thresholds)

Leave Max Loan empty for infinity. Ranges are inclusive of Min and exclusive of Max.

Min Loan ($) Max Loan ($) Cap Type Value
3. Itemized Fees
Description Amount ($) Include in Cap?
Results
Enter valid loan details
Applicable Cap Limit
$0.00
Total Points & Fees Included
$0.00
Headroom (Remaining Margin)
$0.00
Rule Applied
-

About the QM Points-and-Fees Cap Calculator

The QM points-and-fees calculator assists mortgage lenders, compliance officers, and loan originators in verifying Truth in Lending Act (TILA) compliance. Instantly test loan scenarios against the Reg Z Section 1026.43 tiered percentage caps to ensure a mortgage retains its Qualified Mortgage safe harbor status.

How it works

  1. Enter the total loan amount to determine the applicable Reg Z loan tier.
  2. Input all relevant origination charges, discount points, and affiliate fees included in the transaction.
  3. Check the calculated points-and-fees total against the legal threshold to verify QM pass or fail status.

Frequently asked questions

What is the standard points and fees cap for a Qualified Mortgage?

For standard loan amounts over the annual threshold, the total points and fees generally cannot exceed 3% of the total loan amount.

Are bona fide discount points included in the QM calculation?

Up to two bona fide discount points can be excluded from the calculation, provided the starting interest rate is within certain limits of the Average Prime Offer Rate.

How do affiliate fees impact the points and fees test?

Fees paid to an affiliate of the creditor must generally be included in the points and fees calculation. This makes it easier to breach the cap.

Does the points and fees cap change annually?

Yes. The Consumer Financial Protection Bureau (CFPB) adjusts the loan amount thresholds and dollar caps annually based on changes in the Consumer Price Index.

References