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.
Could the new Qualified Mortgage (QM) rule bring about a dangerous housing bubble?
Could the CFPB be worried that its ability-to-repay/qualified mortgage rule is already contracting the availability of mortgage credit?
Possible fraudulent lending activity increased last year just as the Consumer Financial Protection Bureau prepared to issue new regulations requiring lenders to verify borrowers’ financial records and ability to repay mortgages.