Update to Kentucky Net Income Audit Message

Previously, the total net income a mortgage loan originator can generate from a residential real estate loan to the greater of $2,000 or 4% of the total loan amount. The statute has been updated so the net income limit applies only to loans where the points and fees exceed the threshold for qualified mortgages “QM” under Reg Z.  

Since not all of our clients use the DocMagic QM Points and Fees test, DocMagic will be updating the messaging on this test to read: “Total net income paid to the Lender of $ X.XX exceeds/does not exceed (based on the audit finding) the greater of $2,000 or 4% of the total loan amount. If this test exceeds KY limits, please review your QM Points and Fees findings. This loan is exempt where total points and fees do not exceed federal thresholds.”