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How the 2014 Qualified Home finance loan (QM) Rule Could Affect Your current Approval

by Ron Bennett, NMLS 57792. Sr. Loan Officer

As most of us roll into 2014, some of the loose lending issues of the last years still raise their very own heads. I say which because of a situation by incorporating clients I satisfied with this weekend. Many people refinanced in 2005 in to what they thought was a fixed loan, however come to find out that it was an adjustable rate. The good news is rates are still lower so these people did not see a big adjustment to their check. If rates ended up high, they would may see an upward resetting to their rate every last 6 months.

Problems such as these ended in the passing in the Dodd-Frank Wall Street Alter and Consumer Safeguards Act and the introduction of the Consumer Financial Safeguards Bureau (CFPB). And with the production of the CFPB, we now have a law that requires mortgage lenders evaluate the consumers ability to pay off a mortgage loan. Efficient January 10, 2014, many mortgage rules altered and could influence a qualification of home mortgages and the types of loans consumers can get.

Bottom range, lenders will be essential to ensure that the borrowers can repay their residential loans. In return for making sure you’ll be able to repay your mortgages, the lenders will be resistant to borrower lawsuits so long as they issue