In the May 9, 2014, issue of the Federal Register (79 FR 26620) the Department of Veteran
Affairs (VA) published an interim final rule defining qualified mortgage. In reading the rule it appears that the defintion is:
"...any loan guaranteed, insured, or made by VA."
This interim final rule establishes that almost all VA loans that meet current underwriting standards will be safe harbor qualified mortgages, but that some streamlined refinances, also known as Interest Rate Reduction Refinance Loans (IRRRLs), will be considered rebuttable presumption qualified mortgages. In the rule the Veterans Administration is also specifying income verification requirements for IRRRLs.
The rule does not change VA’s regulations or policies with respect to how lenders are to originate mortgages, except to the extent lenders want to make qualified mortgages.
The interim final rule became effective May 9, 2014, and the VA is requesting comments on the interim final rule pending publication of a final rule.