Non-QM (Non-Qualified Mortgage) loans are getting a bad rap as the coming of the next subprime wave. Although they may be considered a little riskier than your standard QM (Qualified Mortgage), the perceived risk is in not having the QM’s safe harbor from repayment ability requirements. Some loans may have loan terms, i.e. interest only features, which disqualifies them as…
The Consumer Financial Protection Bureau finally issued their long-awaited updates the “Know Before You Owe” rule (better known to lenders as TRID) on Friday, July 7th. The big news is not so much of what CFPB said, but more so in what was not said. CFPB addressed some areas that needed clarification. But, noticeably they side-stepped two of the main…
Recently, I’ve been writing about the challenges lenders face resulting from a shortage of affordable housing. With consumers having less money available for a down payment, lenders are forced to stretch the credit and income limits to qualify potential home buyers for higher priced homes. Now, we start to see the flip side. Loan defects, fraud, and misrepresentations once again…
Hope you all had a happy July 4th holiday. It’s great to see the country come together to celebrate our freedoms and honor those who sacrificed to preserve them. Even if it was only for one day! Another thing to celebrate is the improving economy. But, with continued low mortgage rates, great mortgage products, and increasing home values and equity,…
The number of existing homes for sale has continued to decline over the past few years. Simply put, this means there aren’t enough homes on the market for those who wish to buy. That’s good for some existing homeowners as it increases their home’s value, but it also makes it difficult for them to find another home, if they sell.…
In case you missed it, or just plain forgot, effective July 1st the 3 credit repositories, Equifax, Experian and Trans Union, will discontinue reporting most tax liens and civil judgments, as well as, any unpaid medical bills of 6 months or less, on consumer credit reports. This is the result of an agreement they made with 31 state Attorneys General.…
