Finance
A New Mexico buyer's loan is classified as a 'Qualified Mortgage' (QM) under CFPB rules. This means the loan:
AIs backed by the federal government
BMeets specific underwriting standards (including DTI and fee caps) providing lender protections against borrower ability-to-repay claims✓ Correct
CRequires a 20% down payment
DMust be a fixed-rate loan
Explanation
Qualified Mortgages meet CFPB standards — including a 43% DTI cap, no risky features (no negative amortization, no interest-only, no balloon payments in most cases), and fee limits. Lenders receive legal protection from ability-to-repay lawsuits for QMs.
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