Finance
A South Dakota 'qualified mortgage' (QM) under Dodd-Frank regulations must NOT have:
AA fixed interest rate
BPoints and fees exceeding 3% of the loan amount✓ Correct
CA maturity of 30 years
DPrivate mortgage insurance
Explanation
Under QM rules, points and fees generally cannot exceed 3% of the loan amount (with exceptions for small loans). QMs also cannot have negative amortization, interest-only periods, or balloon payments.
Related South Dakota Finance Questions
- In South Dakota real estate transactions, an 'adjustable-rate mortgage' (ARM) typically features:
- A South Dakota buyer pays 1.5% origination fee on a $240,000 loan. How much is the origination fee?
- The South Dakota Housing Development Authority (SDHDA) provides:
- A South Dakota property has a potential gross income of $60,000, vacancy and credit losses of $3,000, and operating expenses of $22,000. What is the net operating income (NOI)?
- An adjustable-rate mortgage (ARM) in South Dakota has an interest rate that:
- A South Dakota buyer using a VA loan must pay a VA funding fee. This fee can be:
- Which of the following events would trigger a due-on-sale clause in a South Dakota mortgage?
- In South Dakota, a 'chattel mortgage' or security interest in personal property (like fixtures or equipment) is governed by:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →