QM-driven market demands new partnerships – Free lender eBook download

lender ebook imageAfter years of heavy refinance activity, today’s market has moved sharply to purchases, leaving lenders fighting harder for business. Mortgage lenders must now look at new strategies and tactics to grow their purchase business.

At the same time, Housing Finance Agencies (HFAs) are stepping in to serve an important role in our new QM-driven market. HFAs are exempt from new mortgage regulations and also offer down payment assistance programs.

eBook for Mortgage Lenders

Take a minute to download our eBook to learn how mortgage lenders can differentiate themselves and partner with HFAs, Realtors and home builders to educate buyers about new options and close more loans. keep reading

Webinar: HFA partnerships vital in QM-driven market

It’s a dramatic new year for housing. With a market sharply transitioning from refinances to purchases and new mortgage regulations in place, homebuyers and professionals must consider new factors and financing options during the home buying process.

Consider the following:

  • FHA—once the go-to source for first-time homebuyers—now have higher costs.
  • The Mortgage Bankers Association warns of a potential new “shadow industry” as a result of the new Qualified Mortgage (QM) rule that may cause some low-income borrowers to take out loans with higher rates.
  • First-time homebuyers, important for a healthy market, have diminished from 40% to just 28% of buyers. Saving for the down payment continues to be the number one obstacle to homeownership.

In this new QM-driven market, Housing Finance Agencies (HFAs) are stepping in to serve an important role. HFAs will be increasingly relevant because the Consumer Financial Protection Bureau exempted them from the new regulations and they also offer down payment and homebuyer assistance programs.

From a recent Bloomberg article on the importance of HFAs, Lawrence Yun, Chief Economist of the National Association of Realtors said, “First-time buyers have not been participating in the market recovery. Housing-finance agencies could provide a channel for these buyers.”

Webinar for lenders

Please join us for a special educational webinar to learn more about how partnering with HFAs, Realtors and other strategic partners can help your organization close more loans. keep reading

Qualified Mortgage Rule Effective in January; HFA Loans Exempt

govern regulationYou may know new mortgage regulations are on the horizon, but what will the impact be on homebuyers, Realtors and lenders?

Lenders have been preparing for the January 10, 2014 effective date of the Ability to Repay and Qualified Mortgage Rule. This rule is under the Truth in Lending Act and prohibits a lender from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. The debt-to-income ratio (DTI) must be 43 percent or less and the rule includes a 3% cap on fees and points. It also establishes certain protections from liability for loans that meet the requirements of a “qualified mortgage.” We are still awaiting the Qualified Residential Mortgage (QRM) rule, which will address risk retention, but many advocate for it to be aligned with QM.

As our team has attended events and discussed with housing experts, we’ve seen a few key themes emerge:

  • The majority of today’s mortgage market is processed through the GSE online approval engines. If the loan makes it through Fannie, Freddie, USDA or VA, then it will be considered a QM loan, regardless of DTI. However, the agencies are already very close to the 43 percent DTI limit.
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