At a high level home buyers and real estate agents may notice more paperwork this year in your loan packages and possibly some longer close times. QM ( Qualified Mortgage ) took effect on January 10th of this year 2014. The idea was to make sure clients weren’t being overcharged for fees and to ensure clients could afford (now and in the determinable future) their mortgage payments.
QM is also known as the “3% rule”. As banks adjust to these new laws and try to determine the best way to implement them you may see some slow downs from underwriting. Each bank has slightly different interpretations and implementation policies.
Like anything else with some trial and error most banks will be on the same page and tighten up their processes. We don’t see this having any major impact on clients in the medium and long run. Most lenders in business today aren’t charging anywhere near 3%+ in fees, so it is almost a moot point.
Feel free to call me if you have any Mortgage related questions or on the Qualified Mortgage Rule. My contact information is below and I look forward to speaking with you.
Max A Kallos
404-277-5884 cell
[email protected]
NMLS 156311 MLO NMLS 170267
Recognized in ‘Atlanta’ Magazine as a Five Star Mortgage Professional
Endorsed by Emmy Winning Consumer Advocate Dale Cardwell!
