The Pendulum Continues to Swing...
for Approving Potential Homeowners
A large reason for the implosion of the housing industry was the slack underwriting rules...or lack of rules.
Most of us will agree it was way too easy to get a mortgage, many mortgages had very little chance of succesful repayment.
And most of us will agree there was one thing behind the "easy to get" mortgages...GREED!
With the gov't now involved, requesting adjustments to the definition of a, "Qualified Residential Mortgage" (QRM)...they expect that another housing collaspe will never happen again.
Homeowners who don't qualify for a "QRM" will most likley have to pay higher rates and put more money down.
Bottom Line: We may prevent another housing collaspe in the future...but the qualifications to get a loan to buy a home will become tougher and the costs of getting a mortgage will increase.
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