True or False: Qualified Mortgages (QMs) can contain risk features like interest-only or negative amortization.

Qualified Mortgages (QMs) are designed to protect borrowers and ensure that loans are made based on the borrower's ability to repay. One of the fundamental characteristics of QMs is that they cannot include certain risky features that could jeopardize a borrower's financial stability. Specifically, QMs are prohibited from having features like interest-only payments or negative amortization.

The intent behind these restrictions is to promote responsible lending practices and reduce the likelihood of defaults, especially during periods of financial strain. Consequently, loans classified as Qualified Mortgages provide borrowers with more predictable and stable payment structures, minimizing the risk of payment shock or ballooning debt that can occur with interest-only or negative amortization loans.

Thus, stating that Qualified Mortgages can contain risk features like interest-only or negative amortization is false.