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Could Dodd-Frank be any worse for the real estate industry? Yes - Keep an eye on this one!

By
Services for Real Estate Pros with Marte Cliff Copywriting

Sheesh! I just read a new article on Bankrate.com explaining that regulators are considering how to implement another of the Dodd-Frank "reform" provisions.

This one would set forth the terms for a Qualified Residential Mortgage - QRM. Among the qualifications under consideration are:

  • 20% down required on a home purchase
  • House payment may not exceed 28% of income
  • Total debt not to exceed 36% of income
  • May not have been 60 days late on ANY payment within the past 2 years

The only "saving" factor in all this is that FHA loans would not fall under QRM regulations. I'm not so sure that forcing the majority of home buyers into a government loan spells "safety" for taxpayers, but...

The other high point to all this is that there will be a comment period before the regulator's recommendations are put into practice.

It's just one more thing to be aware of and keep an eye out for - so you can add your comments when the time comes.

You can read the whole article at: http://www.bankrate.com/finance/mortgages/rule-could-make-mortgages-harder-to-get.aspx?ec_id=brmint_newsalert_20110331

 

Comments(3)

Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Hi Marte,

Didn't you suggest not wondering into political blog discussions for fear of alienating prospective clients?  About a month ago?

I think Dodd-Frank is more big, central government command & control over too many facets of our lives.

 

Mar 31, 2011 10:07 AM
Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

Marte, Loyd couldn't be more accurate.  We got the banks out of Real Estate now how getting the government out of lending.

Mar 31, 2011 10:15 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Lloyd - Did I say that? Maybe I did. Or maybe what I said is "Don't do it if you're afraid of losing business from people who disagree."

But in today's climate, it's pretty hard to ignore. And whether it alienates anyone or not - I agree with you about Dodd-Frank and the entire issue of government control.

I especially think that people who don't know anything about real estate shouldn't be making up rules to control it. And I'd better stop there, because no one wants to hear my soap-box rant.

Meanwhile... I think it's important for real estate professionals to keep an eye on this and give input when the time comes. Perhaps some agents will think this is a good thing. Had there been strict standards a few years back, the country wouldn't be mired in foreclosures right now. Of course, there wouldn't have been so many homes sold, either.

Joe - Right. They don't know what they're doing.

 

Mar 31, 2011 11:12 AM