Mortgage brokers are expected to be "an important conduit" for alternative products as borrowing becomes tougher
Credit unions are likely to reduce their origination of mortgages that don’t adhere to incoming requirements laid out by the Consumer Financial Protection Bureau
When David Zugheri launched Envoy Mortgage 16 years ago, it was only him, his partner, and $8,000. Today the company sells loans in 48 states, employs 1,000 people and stands as a mortgage industry success story.
They are young, tech-savvy, debt-burdened, and cash-strapped. The entire American housing market economy depends on their participation, but the credit markets see them with apprehension.
As the qualified mortgage (QM) and qualified residential mortgage (QRM) future rules are discussed by rulemaking officials, housing advocates and Wall Street investors, the rental markets in the United States continue their healthy growth. Real estate analysts such as Christopher Matthews of Time magazine believe that strict QM and QRM rules may end up placing greater restrictions on mortgage lending, which will only make rental markets even more profitable.
With the end of the blissful go-go days of an ever-rising housing market and ever-prime mortgages, the notion of risk has become our close companion.