QM Updates
-
New Lending Rules to Prohibit No-Doc and Low-Doc Mortgages in 2014
A new set of federal rules will eventually limit the use of low-documentation and no-documentation mortgage loans. Under the new rules, which are scheduled to take effect in January 2014,...
-
Interest-only mortgages may be prohibited by Dodd-Frank and QM
Interest-only mortgages were common during the housing boom. These are loans where the borrower puts off repaying the principal amount, paying only interest for a period of time. They will likely be prohibited by QM.
-
QM rule probably won’t require 20% down payment
Will borrowers be required to put 20% down on mortgage loans, under the new QM rules? It’s not likely. The initial proposal prompted a storm of criticism from various groups. We don’t expect it to be part of the finalized requirement.