"Here’s how it goes: The APOR – the average prime offer rate plus 200 basis points," Ishbia said. "That’s the number you have to be looking for – and as long as your APR is below that number, you’re good to go. No more worrying about QM from a 43% DTI perspective. … Fannie Mae and Freddie Mac had that patch that said that they could go anywhere they want, and it’s still QM. But that was going to expire. Now, APOR plus 200 basis points, that’s the proposal."

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