 To qualify as a QM under the QM final rule (including under the temporary alternative definition of QM for government- backed loans), the points and fees payable in connection with the loan may not exceed 3% of the total loan amount.  As it relates  to private mortgage insurance, any premium char ges payable  after  closing (e.g., monthly premiums) are excluded from the  points and fees calculation. With regard to up-front private mortgage insurance premiums (premium char ges payable  at or  before  closing), the portion of the premium that is not in excess of the up-front FHA  premium at the time of the loan’ s  origination is also excluded from the points and fees calculation, as long as the private mortgage insurance up-front premium is  required to be refundable on a pro-rated basis and the refund is automatically issued upon notification of the satisfaction of the  underlying mortgage. Any private mortgage insurance up-front premium that is in excess of the current FHA  up-front premium  is included in the calculation of the limitation on points and fees.  The CFPB has clarified that only the portion of the private  mortgage insurance up-front premium that exceeds the FHA  up-front premium must be included in points and fees. While the final rule does not explicitly address the treatment of up-front premiums that are financed over the life of the  loan, the CFPB’s guidance regarding the application of the points and fees calculation to private mortgage insurance appears to  suggest that any part of the up-front premium in excess of the FHA  premium that is financed into the monthly payments that are  paid after the loan closing are excluded from the points and fees calculation.   Unlike with private mortgage insurance, all mortgage insurance premiums or mortgage guarantees char ged by FHA, VA,  USDA, or the Rural Housing Service are excluded from the calculation of points and fees.  This includes both up-front and  monthly premiums. We are continuing to evaluate the impact, if any , that the new QM definition may have on the structure,  marketability and pricing of our mortgage insurance products. The Dodd-Frank Act establishes a Financial Stability Oversight Council (“FSOC”), which is authorized to subject non- bank financial companies deemed systemically important financial institutions to more rigorous prudential standards and other  requirements and to subject such companies to a special liquidation process outside the federal bankruptcy code, administered  by the FDIC (although insurance company subsidiaries would remain subject to liquidation and rehabilitation proceedings  under state law). In its 2012 Annual Report, the FSOC recommended that FSOC member agencies, HUD, and Congress  develop a long-term housing finance reform framework that supports the central role of private capital and the emphasis on  consumer and investor protections in any future housing finance system. It is unclear whether the FSOC will take any  additional steps to address housing finance reform. In addition, the Dodd-Frank Act establishes a Federal Insurance Of fice within the U.S. Department of the  Treasury. While  not having a general supervisory or regulatory authority over the business of insurance, the director of this of fice will perform  various functions with respect to insurance, including serving as a non-voting member of the FSOC and making  recommendations to the FSOC regarding insurers to be designated for more stringent regulation.  The director is also required to  conduct a study on how to modernize and improve the system of insurance regulation in the U.S., including by increased  national uniformity through either a federal charter or ef fective action by the states.  See “Risk Factors— The Dodd-Frank Act may have a material effect on our mortgage insurance and financial guaranty  businesses. ” 55