Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Sponsored Links
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
No new orders today 13140839
Stupid MLS comments. 3350282
What do you know about Froy Candelario, top agent in USA 1229920
Stupid QC comments and BPO requirements. 1104146
New HUD Listing Brokers---Any Update? 1057992
Is there religious content in Buffini class? 846509
Let's talk about our cars 699003
Name that Flick. Great movie Lines. 623988
Most common items found at an REO 619578
Pay it Forward - BPO/REO Tips & Tricks I & II 615010
EML 459235
Main Street 444818
asset val seminar in colorado 423034
assist 2 sell or 1 percent realty? 354029
HOMONYMS - There, Their, and They're 329255
Evalonline 300209
Land America 285053
Mainstreet 261860
Matched Content
Topic Options
Rate This Topic
#429915 - 11/02/13 06:42 PM Agents........are you ready for January 2014?
SmartMoney Offline

Registered: 08/13/05
Posts: 102
Loc: No. VA
Or, are you going to get caught in the headlights?

There are some mighty big changes coming to the lending world and two phrases are sending chills down your lenders' backs:

QM (Qualified Mortgage) & ATR (Ability to Repay)

Bottom-line: bye-bye to IO loans, > 30 year loans, neg-am loans, balloon notes, prepayment penalties, any loan costing > 3%, and loans over 43% (this is for conventional, VA, FHA).

Why the hard line on ratios (on guidelines that have already tightened way down)? If a lender approves and closes a loan with any of these features and those borrowers later default, those borrowers have grounds (with government support)to sue the lender for providing a loan they never should have been given. Think about that for a minute. You have a customer that is at a 42.3% ratio, and the overtime on the borrower's paystub was calculated based on a 24 month average. But due to the UW leaving off the YTD months, the file should have used YTD and a 32 month average (raising the ratio to over 43%), you now have a loan in direct violation of these rules. If buyer defaults, he can sue and maybe keep the house. Underwriting has become a challenge, with perfection demanded in every file. What kind of rock turning do you think you will see in underwriting?

No one wants to come waltzing in to a real estate office and tell agents that their far and few buyers may not make it if they don't close this year. But I urge everyone to Google these phrases or at the very least, ask their lender the next time they see them.

#431397 - 01/02/14 08:51 AM Re: Agents........are you ready for January 2014? [Re: SmartMoney]
Nashville Homes Offline

Registered: 07/25/13
Posts: 113
Loc: Nashville, TN
Thanks for posting this! Would you be able to cite the source of some of your info (preferrably a web page!)? I try to write about mortgage-related issues in my real estate blog, but I'll admit, I don't follow the news as well as I should!

#431400 - 01/02/14 10:48 AM Re: Agents........are you ready for January 2014? [Re: SmartMoney]
KyleH Offline
Junior Member

Registered: 01/01/14
Posts: 9
Loc: Texas
Thanks for this. I've heard about the QM. I didn't really put an example to it like you did. When you put it like that, it really does sink in about what we are in store for.


Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.

Newest Members
shielapg16, Jessica Lambert, FlyRN2RE, Go Oxy Magic, marySr3illy
30141 Registered Users
Who's Online
0 registered (), 36 Guests and 3 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Trouble 18
Z06Fanatic 14
Vermont 12
LuG 11
Mr. Clean 11
Bigtoe 10
VABroker 9
RonnieEmz 8
estatereal 8
cathyCZ18 7
Roadfrontage 6
kirastan 6
sualk54 5
newagent2028 5
David Hunter 4
Featured Member
Registered: 01/27/07
Posts: 3174

How To Advertise Here

This site presented by RNC Internet Services