Yes, we believe that a loan with a term of 30.1 years may still comply with the CFPB’s 30-year term limitation for a qualified mortgage. The official interpretations clarify that the period of time between the consummation of a loan and the time the first payment is due in the repayment schedule does not count toward the 30-year term limitation.

As you pointed out, a loan cannot be a qualified mortgage if the loan term exceeds 30 years. 12 CFR 1026.43(e)(2)(ii). However, the official staff commentary clarifies that the 30-year term limitation is “applied without regard to any interim period between consummation and the beginning of the first full unit period of the repayment schedule.” Official Interpretations, 12 CFR 1026, Paragraph 43(e)(2)(ii), Comment 1. For example, if a loan was consummated on March 20, 2014, and the due date for the first payment was April 30, 2014, then the beginning of the first full period of the repayment schedule is April 1, 2014, with the loan term ending on April 1, 2044. The official staff commentary clarifies that this loan would be in compliance with the 30-year term limitation requirement. Official Interpretations, 12 CFR 1026, Paragraph 43(e)(2)(ii), Comment 1.