You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Will Regulators Make the QRM Mistake All Over Again? ”.
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Will Regulators Make the QRM Mistake All Over Again? ”.
In general, this discussion would seem to relevant only insofar as loans are insured with tax payer dollars. GSEs like Fannie and Freddy are part of the reason we have the mess that we do now.
I am trying to buy a beautiful home myself here in NW Florida. I make well above a normal two family income, have near perfect credit, and only one vehicle financed. One of the top four major banks are scrutinizing this loan to death. Obviously, they are already using the QRM you mentioned.
Yes, CFPB should produce a QM rule that will assure the lenders whether an individual can repay the loan or not. http://www.toptaxdefenders.com/
I am a realtor and it appears to me that NAR and the unknown other people don’t remember what caused the last melt down. Prime and Sub-prime loans that were not monitored by the regulators and were given to any body who could sign their name. The problem starts when the government doesn’t do it job,
Could you possibly use any more acronyms in this article? I think that it looks like that was done on purpose by the author!
But nearly every article of the NAR, National Association of Realtors, contains all kinds of acronys.
Does the general public know what the NAR is, or do they recognize the National Association of Realtors.
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Karl – Loans to anyone who could breathe? Did any REALTOR working with a buyer client ever bother to do an amortization using “worst case” interest rate changes? Did any REALTOR show their client that in 3, 5, 7 years their payment might increase dramatically to an unaffordable level; presuming their client’s income was flat or only rose 3% per year? I would bet just about every REALTOR kept their trap shut just to do the deal. If you are handing out the blame to regulators and lenders, be sure to give an ample serving to REALTORS as well. Signed…a REALTOR
[...] more about QM and [...]
Steve – As much as I agree with your point, however you’ve opened a can of warms -I would blame the government, specifically Federal Reserve, they were the ones that cut the red tape. Remember? There was a big article and almost like campaign type of promotion.
Federal Reserve that guarantied loans was the reason sub-prime market was created. Corporate greed just took over and ran with it. Who allowed the Federal Reserve to cut back on regulations and guarantee loans that they had no business in?
It’s was the stimulus package for real estate market. They started printing money way before the “Stimulus Package”. Either way it went into someones pocket and we ended up with the bill.
Yes you can blame the Realtors, Mortgage Brokers and why not, the borrowers as well. But, I say if you don’t offer the product there is nothing to sell.
To get back to the topic, QM or QRM those are just labels with bunch of bureaucracy and smoke screens. You don’t need to go into panic mode just because of the melt down. Get back to basics and what use to work in conventional, non conventional, FHA, VA loans. Keep it simple.
The banks should follow the regulations of the Fed after all the Fed is the one that created the Reserve. If banks don’t play by the rules then they should pay for it. The bigger the reward, greater the responsibility. After all they are making billions – so it goes with the territory.
Trying to over regulate the guidelines, and giving safe haven to the banks, “Rebuttable presumption” and “safe harbor”. Common!!!…
Will they be able to predict what the weather is going to be like a year from now too????
Keep it simple!
I say Fed should keep an eye on the market closer and raise and/or lower the down payment requirements and the interest rates to control the market stability and growth. It’s very simple.
If everything was done by the Federal Reserve guidelines.
The borrower should not be able to sue the lender if they can not make the payment. Period! Close the loopholes!
Take care
A Realtor