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Qualified Mortgage Rule and The Bad Boys of Mortgages
Qualified Mortgage Rule
and The Bad Boys of Mortgages


 
The new Dodd/Frank Qualified Mortgage rules will be implemented January 10th 2014. What are the new underwriting guidelines?  Beats me.  It appears the lenders are on-line trying to find someone who reads hieroglyphics to interpret the nearly 900 pages of rules.

“Taking out a mortgage is one of the biggest financial decisions a consumer will ever make,” Consumer Financial Protection Bureau (CFPB) Director Richard Cordray said.  “Our new Know Before You Owe mortgage forms improve consumer understanding, aid comparison shopping and help prevent closing table surprises for consumers.”   The forms are so awesome and easy to read that their execution has been delayed until July, 2015.

This much is true: It will be a rocky mortgage ride until the lenders can apply the new rules and disclosures.  The government officials truly believe if clients sign pages and pages and pages of paperwork, the less likely they will go into foreclosure.
Also, if a lender does not follow the QM guidelines, Fannie Mae and Freddie Mac will not purchase the loan.  The lender will be stuck with it on their credit line and they will lose legal protection in case of default.

David Stevens, ... more

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