NON QUALIFIED MORTGAGES... THE FORBIDDEN FRUIT
In checking out various publications, it is hard to not see something on a daily basis about qualified mortgages. What are they? What will become of those borrowers who do not fit "qualified" mortgages guidelines? Will mortgage lending tighten even more?
I find it interesting that Raj Date, who was former deputy director of the CFPB has opened a consulting firm to focus on the industry for which his agency designed regulations.
That is some creative work, sir. Given the CFPB regulations, there will certainly be a market for your services.
According to reports employees of the CFPB are heading out the door where they can demand more for their talents, and in Mr. Date's case, where he has a market for his services created by his own actions. Other ex CFPB employees should find job hunting easy with their insider information about the bureau.
Raj Date's new firm will operate as an advisory to firms offering consumer loans that do not qualify as "qualified mortgages". Some statements that have been attributed to him. "It is just way too hard for good, responsible people to get good mortgages today," "You can't actually boil people down to a single three digit number: That's not reality," "We're going to make loans if it is sensible to do so-irrespective of any particular metric."
I think many consumers would agree that it is just too hard for good, responsible people to get mortgages today. It is interesting the architect of the forbidden fruit of non qualified mortgages will be offering a solution. In a sense he has created a market for his goods.
So, these risky mortgages that are not "QUALIFIED" can be made under the right circumstances, just not by the TPO channel. Mr. Date has on several occasions blamed mortgage brokers for the housing collapse even though there is not a shred of proof that was the case. It is interesting that he is now aligning himself to clean up in the area of forbidden fruit.
Comments(0)