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HUD releases final QM rule

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Mortgage Professional America | 12 Dec 2013, 04:54 AM Agree 0
The Department of Housing and Urban Development on Wednesday released its final rule defining “qualified mortgages” that the agency insures
  • Jay Stoneburner | | 12 Dec 2013, 08:29 AM Agree 0
    We can not do mortgages with 3% total cost, as brokers all you are doing is driving us out of business
  • Johnny | | 12 Dec 2013, 08:57 AM Agree 0
    It would be nice if we could tell the government how much they can make. I would hope there is someone out there fighting for the mortgage broker. Only place around where you are told how much you can make.
  • L. PALOMINO | | 12 Dec 2013, 09:02 AM Agree 0
    Corporate greed at it's best. I wonder who lobbied for this new law? Funny how QM does not apply to direct lenders! Pathetic.
  • Larry Lambert | | 12 Dec 2013, 09:06 AM Agree 0
    The point is to drive individual broker out of business. The government will be able to regulate a few large companies rather that a multitude of service driven small brokers. They win, we loose... same with Dr.'s offices..
  • Larry Lambert | | 12 Dec 2013, 09:09 AM Agree 0
    That is the point to the limit. Driving the small service driven brokers out of business making it easier for the massive government to regulate a few rather than many.
  • Jeff | | 12 Dec 2013, 09:28 AM Agree 0
    After 20 years in business and never having a consumer complaint. We will be closing our doors. The cost of business keeps going up and yet you limit our ability to make a profit. This would be the same thing as telling a car dealership that you can only make $200.00 dollars on each car you sell. See how long they stay in business. We work hard for our clients and desevre to make money for time spent with each of them.
  • Tray Webb | | 12 Dec 2013, 09:35 AM Agree 0
    100% agree Jay, my company has been in business for almost 18 years, all referral based and repeat clients, small shop, my assistant, one LO and myself...have run and a successful and honest business and I am being pushed out the door or force to spend extra funds (on top of NMLS and state fees for BS continuing ed) to become a mini correspondent to compete with the banks that we bailed out as a result of the sub prime mortgage crisis. The bad guys have already been forced out of business and the current system is cookie cutter already...the CFPB has created a HUGE uneven playing field and will put so many more brokers out of work...not to mention how much more money it will cost a consumer to purchase a home directly thru a bank and completely stifle the housing market recovery...utterly amazed at how little our elected officials understand any of this.
  • bob ex broker | | 12 Dec 2013, 11:26 AM Agree 0
    had to close my doors after 18 years in 2012, we were good compy with no complaints, god bless Dodd and Frank cause nobody elase should, what a joke, and your right the consumer will pay more, lets give the big banks more money why not its a socialist country any way
  • Peggy Beauregard | | 12 Dec 2013, 11:34 AM Agree 0
    Your elected officials have no clue about running a business. They are lawyers and think their job is to make laws. Put in time limits on laws and change over confess. This bill was intended as already said to put brokers out of business. As usual, the thought is coming from scarcity instead of plenty for all in this hugely expanding universe.

    What is NAR doing about protecting the broker lender? Those are your lobbyist.
  • James L. | | 12 Dec 2013, 11:49 AM Agree 0
    THIS IS NOT ABOUT FAIRNESS NOR JUSTICE.. THIS IS THE BIG BANKS GETTING THEIR WAY .. RUN THE SMALL GUY OUT !!! .. THIS WHOLE THING IS A ORCHESTRATED JOKE.. BIG BANKS DO NOT FOLLOW THE SAME RULES AS THE MORTGAGE BROKER ... NOW HOW IS THIS EQUALIZING THE PLAYING FIELD .. BUT THE TRUTH IS WE CAN SCREAM ALL WE WANT BUT THE FEDS AND THE BIG CORP RULE THE SHOW AND IT IS NOT GOING AWAY. FUNNY HOW THIS IS ALL ABOUT EQUALITY BUT THE MORTGAGE BROKER HAS NO EQUALITY RIGHTS.. BLATANT VIOLATION OF ECOA PRINCIPLES
  • JOE M | | 12 Dec 2013, 01:22 PM Agree 0
    Big Banks were losing market share in the mid-
    2000, they wanted brokers gone then, it's just taken until now for those banker
    regulators(D/F ACT) to figure out how to do it, along with the CFPB. NO other industry
    has the Feds DICTATING income levels!!! Can you imagine income caps for attorneys or car dealershipsOR Congress??
  • George L | | 12 Dec 2013, 02:13 PM Agree 0
    Is this the end of the Mortgage Broker..RIP
    Big Banks win...The public will get what they deserve. Lousy service and Big Bank price fixing higher rates.. It was a nice run.
  • Wm Matz | | 12 Dec 2013, 04:27 PM Agree 0
    Agree, all this "reform" hurts consumer. Brokers can still stay in business, but only for larger mortgages. I encourage everyone to tell applicants for smaller mortgages, "Sorry, because of reform we cannot do your mortgage. Go to the bank; it will do your mortgage for [e.g. 1/2%] higher. Write Congress about how you are having to pay higher rates because brokers can no longer do your mortgage."
  • Michael H | | 12 Dec 2013, 04:27 PM Agree 0
    It was mentioned in the article, why would a borrower do this ? "The new rule establishes two types of qualified mortgage: the “rebuttable presumption” qualified mortgage and the “safe harbor” qualified mortgage.
    A rebuttable presumption qualified mortgage will have an annual percentage rate greater than the average prime offer rate +115 basis points plus the ongoing mortgage insurance premium rate. Lenders that offer rebuttable presumption qualified mortgages are presumed to have determined that the borrower has the ability to repay. However, borrowers can challenge that presumption by proving that they didn’t have sufficient income to pay their mortgage along with other living expenses."
    Makes no sense. Also is the 3% a TOTAL figure, no SRP or Premium pricing ? - Sorry if the question is dumb, I'm a Realtor.
  • Nancy V | | 18 Dec 2013, 05:49 AM Agree 0
    I don't like this 3% either. But, I don't think I have ever made $3000 on a mortgage under $100000. There are lenders out there that are not going to charge or have already dropped the administration fee, etc. I am staying a broker. No problem for me. I work alone and have cut my overhead to very little. Still plenty of business to do. Affiliated business only effect the creditor not the broker. Several things on broker side for the good. And NAMB IS FIGHTING FOR YOU. Adapt and prosper. Been in business since 1995.
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