RETECHNOLOGY PREMIUM MARKETPLACE RELATED PRODUCTS | WEBINARS | SPECIAL OFFERS
You are viewing our site as a Broker, Switch Your View:
Agent | Broker Reset Filters to Default Back to List
Due to the ongoing situation with Covid-19, we are offering 3 months free on the agent monthly membership with coupon code: COVID-19A
UNLIMITED ACCESS
With an RE Technology membership you'll be able to view as many articles as you like, from any device that has a valid web browser.
Purchase AccountNOT INTERESTED?
RE Technology lets you freely read 5 pieces of content a Month. If you don't want to purchase an account then you'll be able to read new content again once next month rolls around. In the meantime feel free to continue looking around at what type of content we do publish, you'll be able sign up at any time if you later decide you want to be a member.
Browse the siteARE YOU ALREADY A MEMBER?
Sign into your accountQualified Mortgage Rule Effective Friday; HFA Loans Exempt
January 09 2014
You may know new mortgage regulations are on the horizon, but what will the impact be on homebuyers, Realtors® and lenders?
Lenders have been preparing for the January 10, 2014 effective date of the Ability to Repay and Qualified Mortgage Rule. This rule is under the Truth in Lending Act and prohibits a lender from making a higher-priced mortgage loan without regard to the consumer's ability to repay the loan. The debt-to-income ratio (DTI) must be 43 percent or less and the rule includes a 3% cap on fees and points. It also establishes certain protections from liability for loans that meet the requirements of a "qualified mortgage."
As our team has attended events and discussed with housing experts, we've seen a few key themes emerge:
-
The majority of today's mortgage market is processed through the GSE online approval engines. If the loan makes it through Fannie, Freddie, USDA or VA, then it will be considered a QM loan, regardless of DTI. However, the agencies are already very close to the 43 percent DTI limit.
-
On December 11, HUD released a final rule that sets the standards that FHA-insured loans will have to meet to be considered QM. Loans that do not meet these standards (FHA underwriting standards and 3% cap on all upfront points and fees) will no longer be eligible for FHA-insurance as of January 10, 2014.