Mortech — the loan pricing engine Zillow purchased last November — has integrated tools to help loan originators determine whether a mortgage they have in mind for a particular borrower will pass muster with the Consumer Financial Protection Bureau’s new “qualified mortgage” (QM) regulations set to take effect in January 2014.
When a lender selects a loan product for a loan, the Mortech tool shows whether it meets requirements including debt-to-income ratio, limits on lender fees and points, and annual percentage rate spreads. The lender is notified right away if the loan passes the requirements. If it fails, they can see where it fell short. The tool also includes a set of fair lending tests.