Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Qualified Mortgage rule on 43% will cost borrowers

Notify me of new replies via email
Amy Taylor | 04 May 2014, 06:02 PM Agree 0
The CFPB new Qualified Mortgage rule on 43% maximum debt ratio is not a one size fits all. This rule lacks common sense and will cost borrowers more when they are forced to get a non-QM mortgage.
  • Richard | | 04 May 2014, 06:51 PM Agree 0
    QM is all about FNMA only purchasing mortgages that fit a very tight mold. QM will force wall street and the banks to come up with products where "they" want to take the risk not FNMA /taxpayer
  • David Moore | | 04 May 2014, 07:11 PM Agree 0
    This is exactly what happens when you have people that are absolutely out of touch with the reality making the rules. By pretending to help protect the consumer, they obtain an opposite effect: they hinder a lot of consumers from being able to get a mortgage mortgage.
  • Benjamin Albert | | 04 May 2014, 10:28 PM Agree 0
    Temporary QM's are only applicable to FHA, USDA and VA mortgages, and some investors are not purchasing any 30 year FHA mortgages at ALL any more because they fall into the "HPML" category via the monthly MIP being carried throughout the entire 30 year term now, making the APR more than 1.5% above the APOR.
  • Stewart Walker | | 05 May 2014, 02:02 AM Agree 0
    Compensating factors and discretionary income can be hard concepts to grasp to a layperson. For someone making 3K/mo, even a 40% back end ratio wouldn't leave them with much for their groceries and utilities. But for someone making 30K/mo with healthy reserves, higher dti is no problem. Since most voters don't get this, they'll support the guy that talks tough on ratios.
  • Bill Lavigne | | 09 May 2014, 09:19 AM Agree 0
    I've been around a while and went through a few of the real estate melt downs during my 27 years in the residential mortgage industry, I noticed that it always goes through the same cycle. The regulators come out with hundreds of changes and regulations a year after the damage (real estate crash) is done based on the outcry of the people pushing for tighter controls. The lenders retreat from doing many mortgages that would have been approved previously causing a major debacle in each state as the people complain about not having access to credit to purchase a home or refinance out of a high rate, so the regulators receive a nudge from the powers to ease up on its enforcement of the regulations and propaganda is printed out across the country complaining that banks are not lending money out to people that qualify for mortgages and within a couple years we begin the entire cycle again until the next major real estate crash and we go through the entire cycle again.
    It is frustrating and costly to the industry when everyone tries to manipulate the market on regulation instead of enforcing the laws in place that were meant to deter bad practices including fraud. ---------------------------------------As I post this today ------ congress is already trying to finalize a law that will redefine a law and its definition of fees in hopes of exempting a couple fees that have caused many consumers not meet the lenders restrictions based on the QM rules.
  • Mortgage Professional America | | 06 Aug 2014, 11:38 PM
    Deleted by moderator
  • Mortgage Professional America | | 06 Aug 2014, 11:59 PM
    Deleted by moderator
Post a reply