More fun laws for Lenders.. QM has arrived!

The Short:

QUALIFIED LOAN

NO Interest Only Loans (Say goodbye to the small bank portfolio loan products)

No Negative Amorization Loans (they have not been around for over 3 years now)

No Loans over 30 years (Also.. gone years ago)

NO Debt to Income Ratios over 43% (this excludes FHA, VA, USDA loans) (The ratio’s currently were 45% on loans that required Private Mortgage Insurance and up to 50% on Conventionals loans that did not require PMI)

Again, currently this does not effect loans such as FHA, VA, USDA but does effect Conventional loans such as Fannie Mae and Freddie Mac. These rules are not to go into effect until January 2014 and we hope there will be some feedback prior to that to loosen up the rules as they are currently written.

If you have the time please listen to the show above as covers some other areas of QM that sounds to really put a lender on the hook regardless of consumer irresponsibilty.

– Mike Scalise (815)621-9888

 

 

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