QM Rule & Safe Harbor - Effective 1/10/2014

A little FYI - or a better explanation for you of whats to come in 2014. Dodd-Frank.

Early this year the CFPB (Consumer Financial Protection Bureau) finalized its Ability-to-Repay rule - that outlined the basic requirements that the majority of new mortgages must meet in order to be considered "Qualified Mortgages" (QMs). QM guidelines are designed to make mortgage lending qualifications consistent throughout the industry. These new guidelines establish minimum requirements that aid in determining a potential customer's ability to repay the loan—considerations that include expected income or assets, employment status and other factors. The final rule provides a safe harbor for loans that meet the requirements set for a QM. When the rule becomes effective on January 10th, 2014, I will be ready!

Rob D. NMLS # 336022