Qualified Mortgage is here to stay

This is a concrete step towards strengthening the lending process and prevent the occurrence of another housing mess. 

However, I just wonder what would happen to those who have entered into refinance for fixed mortgage of 40 years. I believe something should be done to help them. For me, a 40-yr mortgage is unconscionable considering that those who availed of it were in no position to negotiate as they were underwater. Sad.

To be considered “qualified,” a mortgage:

• Cannot have risky features, such as interest-only payments or negative amortization (which allows the principal to increase over time even though you are making payments)
• Cannot be longer than 30 years
• Cannot have, in most cases, a balloon payment at the end of the loan
• Cannot have excessive upfront costs. Qualified mortgages of more than $100,000 cannot charge points and fees of more than 3 percent of the loan amount.

http://www.today.com/money/new-mortgage-rules-no-traps-no-runarounds-2D11888322