What is the Definition of Qualified Mortgage?

Qualified Mortgage

Noun

Definition: This includes any obligation (including any participation or certificate of beneficial ownership interest therein) which is principally secured by an interest in real property and which is either (I) transferred to the REM IC on the startup date, or (ii) purchased by the REMIC within the three month period beginning as of the startup day (except as provided in any regulations published) is pursuant to a fixed price contract in effect on the startup day. Additional obligations qualifying as secured by real property for the purposes of being termed a Qualified Mortgage include 1.) obligations secured by stock held by tenants-stockholder in a cooperative housing corporation, 2.) debt securities backed by mortgages on timeshare ownership interests in a condominium development, and 3.) REMIC regular interest (not residual interest) transferred to the REMIC on the startup day in exchange for any interest in the REMIC.

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