If you’re not aware, QM rules are heading your way come January 2014. Lenders will have to retain a portion of the loan made if the loan to value is greater than 80%. What this is going to do is force smaller lenders, who don’t have large amounts of liquid cash, to only fund loans where the buyer is putting at least 20% down. Well there was a lot of push back on this from several organizations and associations because this would mean that many minority and low income families financing options would be realty reduced perhaps even eliminated.
Based on the push back this rule sort of got pushed aside. Well now that we are approaching the release of these wonderful new rules it’s not only been revived, but revised as well. Now the brain trusts that control this stuff want 30% down. Can you imagine having most lenders in the country requiring 30% down? Looks like Wells Fargo, Bank of America, Chase and Citi will officially be the only lenders doing loans in the country. Awesome. I guess “too big to fail” means you simply have absolutely ZERO COMPETITION.
You have time to complain though, and who knows… if enough people do complain they might just listen. Click HERE to file your comment. Also, Please, Please share this video with all of your friends and associates.