Are You Waiting For The Housing Market To Improve?

Many prospective buyers have been waiting on the sidelines for the housing market to improve before buying a home.  If you are watching the markekt, indicators suggest that time is quickly approaching!  In fact, with home prices and interest rates so favorable, there may nevr be a better time to go after the home of your dreams.

As a professional in the housing market, I must be able to give expert advice to our clients in order to guarantee that they make the best decisions for themselves and their families.

When talking to potential purchasers, I must be able to intelligently discuss the changes that will be taking place in 2013 because of CFPB and QRM.

These changes will have a major impact on the mortgage process and a buyer’s ability to finance their purchase of a home.

 Consumer Finance Protection Bureau (CFPB)

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the CFPB. Its purpose is explained on their website:

“The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

The site goes on to explain:

“Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.”

In 2013, the CFPB will put its stamp on the mortgage industry in the United States.

We should keep ourselves aware of the changes that will be coming and their impact on the home purchase experience. One of these changes will be QRM.

Qualified Residential Mortgage (QRM)

The Consumer Financial Protection Bureau (CFPB) and other federal agencies are currently developing guidelines for loans that will have a statistically lower risk of default, based on the underwriting guidelines and product features built into the loan. A loans meeting these new guidelines will be a qualified residential mortgage.

What impact will this have on the mortgage market?

According to the Qualified Residential Mortgage Resource Center:

“The bottom line is that borrowers who fail to meet the basic criteria for a qualified residential mortgage will have a harder time finding a loan, when compared to borrowers who do meet those criteria. They might end up paying a higher interest rate, as well…Financial analysts from J.P. Morgan Securities have estimated that borrowers might pay up to three percentage points more for loans that are subject to risk-retention (i.e., loans that don’t meet the definition of a qualified residential mortgage).” 

This will be crucial in 2013.

Winning With You,

 

 

 

 

About The Author

Jolie Powell

Jolie Powell has been a distinguised leader in the Real Estate industry since 1987. Prior to entering the world of Real Estate, she worked as a TV producer for the Advertising Agency, Dancer Fitzgerald Sample in NYC. Jolie's expertise in counseling buyers and sellers brings people together from Long Island, and indeed, Globally! Having lived abroad and traveled extensively, Jolie has an excellent understanding of many cultures. As a Cuban-born American, she is fluent in Spanish and communicates well with international clients relocating to the North Shore of Long Island. Jolie is proud of the high level of trust she and her clients have established and looks forward to continue building exceptional client/broker relationships.

Comments

  1. Site November 26th, 2013 at 7:37:20 pm

    This is a topic that�s near to my heart� Thank you! Exactly where are your contact details though?|

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