For a loan to meet the definition of a QM, the points and fees payable in connection with the loan may not exceed  3% of the total loan amount (for loans of $100,000 or more; dif ferent limitations apply to smaller balance loans).  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 charges payable at or before closing), the portion of the premium that is not in excess of the then current  up-front FHA premium at the time of the loan’ s origination is also excluded from the points and fees calculation,  while any portion that is in excess of the current FHA  up-front premium is included in the calculation of points and  fees. Unlike with private MI, the final rule excludes any premium or other char ge imposed in connection with FHA  and VA insurance or guarantees from the calculation of points and fees.  We offer mortgage insurance products that  provide for up-front premiums and are evaluating the impact, if any , that the new QM definition may have on the  structure, marketability and pricing of these products.  There is a risk that the final ability to repay rule will restrict the size of the overall mortgage market, and  consequently, the number of loans requiring private mortgage insurance, due to the unwillingness of creditors to  provide non-qualified mortgages. Further , the bifurcation between loans that are eligible for either a conclusive or a  rebuttable presumption could also further impact the market for loans generally available for private mortgage  insurance. We are continuing to review this rule and to evaluate its potential impact on the mortgage market  generally and the private mortgage insurance industry , in particular;  We cannot predict the requirements of the final regulations ultimately adopted under the Dodd-Frank  Act, the full effect  such regulations will have on financial markets generally , or on our mortgage insurance and financial guaranty businesses  specifically, the additional costs associated with compliance with such regulations and any changes to our operations that may  be necessary to comply with the Dodd-Frank Act and the rules adopted thereunder , any of which could have a material adverse  effect on our businesses, cash flows, financial condition and results of operations.  •  sets new limitations and restrictions on banking, derivatives and  ABS, including the imposition of additional  registration, reporting, market conduct and capital and mar gin posting requirements on certain participants in the  derivatives markets that may make it more dif ficult for us to commute, restructure, hedge or otherwise mitigate  losses or reduce exposure on our existing financial guaranty portfolio; and  •  establishes a Federal Insurance Office 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 Council 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.  83