“Wells Fargo has worked collaboratively with other aggregators—among them US Bank and Penny Mac—to address the need to provide evidence of compliance with the QM rule,” according to Wells Fargo Funding executive vice president Eric Stoddard.
To facilitate the sale and transfer of mortgages, it is critically important to ensure the points and fees don’t exceed the 3% limit in the QM rule and the borrower’s debts and income are properly documented so the loan receives safe harbor status.
Wells Fargo has developed a two-page form for points and fees and a separate two-page form for debts and income. The nation’s largest correspondent lender has shared these forms with their clients, competitors, vendors and regulators.
“The response has been positive to the notion of developing industry-standard forms to facilitate efficiency and best execution,” the correspondent executive said.
They are generic forms that are still subject to change. “There is nothing unique about our form except for the data elements,” he said. “We do need to see those data elements that are contained in the form so we are good to go” and buy the loan.