RealtyTrac - the coming mortgage meltdown If you think the HAMP and HARP were disasters, wait till you hear about the next mortgage mess barreling our way. With stricter mortgage lending rules causing banks to leave the mortgage business, housing could take a major hit come Jan. 14, when stringent new federal lending rules imposed by the Consumer Financial Protection Bureau (CFPB) threaten to derail mortgage origination and residential home sales. Come January, fewer Americans will qualify for home mortgages because of these heavy-handed lending rules. This, in turn, will put the brakes on home sales and rising home prices. Sadly, this is an overreaction by federal regulators to the loose lending standards that were commonplace during the bubble years in the early 2000s. Starting next year, qualified mortgage rules, known as QM, will expose loan originators to higher legal liabilities on mortgages with risky features and those with payments exceeding 43% of the borrower’s gross or net income. servicingbayarea
Posted on: Mon, 02 Dec 2013 20:09:07 +0000