We believe that a mortgage loan that qualifies as a qualified mortgage (QM) would not be disqualified simply because it is only partially secured by the borrower's home.

Of course, the new Regulation Z ability-to-repay (ATR) requirements would apply to this loan. The ATR rules apply to consumer credit transactions secured by a “dwelling,” provided that none of the exceptions apply. 12 CFR 1026.43(a). The term “dwelling” includes 1-to-4 family residential properties as well as mobile homes, if the mobile home is used as a residence: “Dwelling means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.” 12 CFR 1026.2(a)(19). Because the loan will be secured by the borrower's home, which is a dwelling (from what you have told us), the ATR rules will apply; it is not necessary to examine whether the motor home is used as a residence or should be considered a “dwelling.”

The fact that a mortgage loan is secured mostly by a motor home, and only partially secured by a home, should not disqualify it from QM status. We note that there is no loan-to-value ratio requirement in the QM rules. (On the other hand, the “qualified residential mortgage” (QRM) rules originally included a LTV ratio requirement when they were initially proposed, but this requirement has been removed in a later proposal and is not likely be included in the final QRM rules). Therefore, if the loan meets all of the other QM requirements in 12 CFR 1026.43, it will not be disqualified merely because it is only partially secured by the borrower's home.