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Regulators reassure lenders on QM rules

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Mortgage Professional America | 16 Dec 2013, 05:20 AM Agree 0
Federal regulators try to reassure lenders that as long as they issue sound mortgages, they shouldn’t worry about regulatory action.
  • Bruce | | 16 Dec 2013, 07:15 AM Agree 0
    I'm sure BoA got the same reassuances from the government before they were pushed to buy Countrywide. We all know how BoA fared so far. I see lenders being very cautious until they see what the CFPB will actually do.
  • Kent | | 16 Dec 2013, 08:22 AM Agree 0
    It will be business as usual ...
  • Tom | | 16 Dec 2013, 08:26 AM Agree 0
    It's a trap! Lenders would be wise to avoid non QM mortgages or pay the price later!
  • Sal Arlia | | 16 Dec 2013, 08:28 AM Agree 0
    CFPB has a lot of nerve putting this information out there. Why have it if they are not going to enforce it. It's BS.
  • steve abo | | 16 Dec 2013, 08:39 AM Agree 0
    wrong wrong wrong. only high fha ltv mortgages need be addressed. it is absurd in this country for government to impose and over regulate consumer choice. we now all know that 100% ltv mortgages dont work and that self employed dont pay taxes. dont we?
  • Mike | | 16 Dec 2013, 08:41 AM Agree 0
    They would help the borrowers they are trying to protect by allowing the continuance of the borrower paid single premiums that have been available for years through the private MI companies. They still allow FHA to do this with their 1.75 upfront premium that does not count in the 3% QM rule. It's only refundable on refi's for 36 months but they will not allow the same refund period for the private MI's for both purchases and refi's without it being counted in the 3%!!
  • Bob Cohen | | 16 Dec 2013, 09:28 AM Agree 0
    Don't Worry..........Be Happy.

    Riiiiiiiiiiiiiiiiight. And I am a lender, not a broker.
  • BizAsUsual | | 16 Dec 2013, 09:43 AM Agree 0
    It's business as usual. If you are not gouging your clients and making an absurd amount on each client you will be fine. People making 2.5%+ will have issues. 2% or less (on most mortgage amounts), you will be fine.
  • Tom | | 16 Dec 2013, 09:52 AM Agree 0
    All lenders will be reducing their mortgage to values and their debt to incomes so it looks as if they did their own due diligence on ability to pay! Ability to pay is where the gray area is and also allows borrowers to file a lawsuit after the fact if they can't make their payments! That all goes hand and hand with non QM mortgages!
  • Nancy | | 16 Dec 2013, 10:08 AM Agree 0
    Ok, right. Like that will make a hill of beans difference to Lenders. This is laughable at best. I won't say anything else as it WILL get me in a whole mess of trouble.
  • Equal treatment under the law?!? | | 16 Dec 2013, 10:51 AM Agree 0
    We are a nation of clearly understood laws. It is wrong to have ambiguous laws and regulators that use their discretion to enforce them. This is not equal treatment under the law. Pretty simple and frightening!
  • Tim | | 16 Dec 2013, 11:18 AM Agree 0
    Found this to be hilarious!! Our government sets a standard ... Qualified / Non-Qualified Mortgages and after realizing the negative effects THEIR rules are going to have on the market have the audacity to say it's OKAY to originate Non QM mortgages!!!
  • Lee in CA | | 16 Dec 2013, 11:33 AM Agree 0
    Sounds too much like the snake and the apple. Who are you going to believe?
  • Lee in CA | | 16 Dec 2013, 11:55 AM Agree 0
    Mortgages are no longer buyer-beware. QM is putting the responsibility and more important "liability" on the lender. The CFPB has basically set this up so that "unless" you are QM, you are subject to being sued by the borrower... period. And the interpretation and application will be determined by the courts.
  • Michael Burroughs | | 17 Dec 2013, 06:39 AM Agree 0
    We are know from experience that the government regulations are always well intended. It is the unintended consequences THAT ALWAYS HAPPENS with almost every regulation passed in my career. (48 years) What isn't being talked about is when a seller accepts a contract and makes plans to buy a house and his buyer gets turned down. THE DOMINO EFFECT.I fear we will see a housing colapse comparable to the stock market crash of 1929. We all know a "sound mortgage" could be a good mortgage, a marginal mortgage, but a bad mortgage should never have been made. What we really need is an Industry that are not FDIC insured so that they get to know the circumstances of their clients, make a judgement, help people when they have a set back, make a "sound" mortgage if circumstances warrant and suffer the loss if their is one and keep the FDIC and others out of the picture. There is plenty of money out there, but not at 3 and 4%. Consumers want what they want and most are willing to pay the MARKET price, but not when the government sets the price, and then sets the regulations to protect the taxpayer..
    regulations to protect the taxpayer. We have allowed this to evolve into a catch 22 and we need a young "Steve Jobs" to figure it out and get the government out of housing. Beware, the government may NATIONALIZE ALL BANKS SOME DAY, and then everything will be the same.
  • Traci | | 17 Dec 2013, 02:26 PM Agree 0
    I'm so tired of taking every QM/Non-QM webinar I can gets my hands on!! When the govt who issues the rules says...don't worry...we need to worry. It has been proven over and over again. Just look at the Best Lie of the Year > yes, you can keep your same doctors and health plans if you want!! I don't think many investors will have an appetite for Non-QM mortgages after the millions and billions they've been forking over to the regulators lately. Not saying they didn't deserve punishment; but have they learned their lesson - NO; and has any financial head gone to jail - NO. In fact they are still violating parts of the Servicing Agreement they so famously worked out with the Attorneys General. Govt should not be able to tell one segment of the economy what they can and can not earn...period!! The competitve free enterprise system is gone!! Guess all we can really do, besides trying out very best to be prepared - is it wait on see when we run a mortgage through DO or LP or GUS on Jan 10th to know if the GSEs tightened the credit and dtir requirements!!
  • Griff | | 19 Dec 2013, 08:14 AM Agree 0
    I will be interested to see how this plays out in the first quarter. I'm not concerned about the QM non QM rules. Now and for, well always, I beat the banks on rate. If I must make less money to fit the new rules, then I am REALLY beating the banks, but making less money. Maybe that is one more segment of the end game of starving out brokers. We don't need to make less to compete, but we may need to make less to be able to do a mortgage with the new rules. Maybe we will make it up on volume. In the end it is just one more arrow into the heart of the free market.
  • Traci | | 19 Dec 2013, 08:26 AM Agree 0
    Well said Griff.
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