New Mortgage Rules Affecting Buyers

Below is a summary of the new mortgage rules that went into effect as of January 10th.  These rules, among other things tighten up lending rules and create some more standards across the board for lending.

Summary of New Qualified Mortgage (QM) Rule | realtor.org.

Under the guise of the Consumer Financial Protection Bureau, these rules are touted as protecting the consumer from predatory lending.  However, I can’t help to think that they actually do the opposite – they protect the lender from the consumer.  These rules do nothing to help buyers get a loan, and in fact makes it much harder.  What it does do is help lenders package and sell “safer” mortgages easier to investors.   Meanwhile, I have already seen two cases of my own hard-working clients being adversely affected by these rules – going from qualified to unqualified with the turn of a calendar day.

In the long run, I can see more buyers saving money for down payments and cutting their credit use in order to buy a home.   No one ever said living on cash was a bad thing and maybe should strive to be like our grandparents, then – save money for a down payment and don’t overextend credit unnecessarily.  It worked for them, why shouldn’t it work for us?

David R. Madaffari, Realtor 
Keller Williams Realty – First Choice
Office: 225.744.0044
Cell: 225.772.3283 (DAVE)
37325 Market Place Dr. Ste D
Prairieville, LA 70769
www.DavidMadaffari.com
Each office independently owned and operated

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