Which one of the following is NOT a requirement of a qualified mortgage?

A qualified mortgage (QM) is designed to protect borrowers from risky lending practices and ensure that they can repay their loans. Certain criteria define what qualifies as a QM.

The verification of borrower income and assets is essential for ensuring that lenders assess the borrower's ability to repay the loan. This aspect safeguards against lending to individuals who may be unable to meet their payment obligations.

A fixed interest rate is often associated with qualified mortgages, as it helps borrowers avoid fluctuating payments over time. Stability in mortgage payments contributes to the overall affordability and predictability of homeownership costs.

The requirement regarding the term of the mortgage not exceeding 30 years is also a crucial characteristic of qualified mortgages, promoting sustainable loan structures.

While a debt-to-income (DTI) ratio not exceeding 50% is generally a guideline in lending, it is not an absolute requirement for qualified mortgages. Instead, the DTI cap for major types of QM loans is often set at 43%. Therefore, stating that a DTI of up to 50% qualifies as a requirement for a QM is inaccurate, as there are provisions under which loans with a DTI exceeding 43% may still be classified as qualified mortgages under certain circumstances. This nuance highlights that the focus of QM is more