Borrowers to face another hurdle in a few months.

As a result of the fall-out from the mortgage implosion, Congress saw fit to step into the fray through the Dodd-Frank Act.  One of its progeny is the creation of a class of mortgage called “qualified mortgage.”  These are loans deemed safe by the government regulators for borrowers.

According to a report in the New York Times,

The mortgage industry is bracing for the coming of “Q.M.,” the new federal rules defining a “qualified mortgage” — or one underwritten to standards deemed safe for consumers. The implementation of Q.M. poses a compliance headache for lenders, though the average borrower is unlikely to notice any difference when the rules take effect in January. The most immediate differences will be felt by borrowers at the higher and lower ends of the income scale.

Among the basic criteria: A Q.M. loan must be fully amortizing with a term no longer than 30 years, and the points and fees paid by the borrower cannot exceed 3 percent of the total loan amount.

Lenders must also document the borrower’s ability to repay the loan, and confirm a debt-to-income ratio of no more than 43 percent.

So, what does this mean for Mr. and Mrs. Borrower?  In our opinion, tighter controls on borrowers as to income, etc.  In other words, lenders will be afraid to lend money to folks looking to move into their first home that doesn't qualify for some sort of first-time homeowner program, or folks trying to move up in home size.

What we find puzzling is that the Federal government offices overseeing mortgage and bank lending are just getting bigger and bigger, and less people are able to borrow.

Read the full story.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Home Equity Credit Line: Is It Right For You?

The headline says it all. Do you consider your house and investment vehicle where value can be leveraged to accomplish goals? Or is it the roof over your head that is not worth jeopardizing?

Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways.

As reported by Realty Times,

If you need to borrow money, home equity lines may be a useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.)

Read the full article here - Home Equity Credit Line: Is It Right For You?

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Turned down for a mortgage loan - Learning From Rejection

Learning From Rejection is the name of a report from the NY Times.

It hurts when you are rejected for anything you feel qualified for, but losing the opportunity to buy a home for one reason or another really hurts.

Why do rejections occur?  Sometimes it's poor credit, other times it low appraisals, or not a high enough down payment.

As the article points out, you can do certain things to get your  loan approved.  Read the full report to find out what they are.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Boom, Bust, Flip - NYTimes Magazine

OK, profiteers at the gates of real estate?  Maybe.  It depends who you ask.  The NY Times Sunday magazine contains a detailed article about folks whose homes have been lost which were then purchased by the bank and sold to a third-party investor for eventual resale.  So what kind of properties are we talking about?

There’s a popular perception that so-called McMansions and Garage-Mahals brought down the housing market. Yet more than half of all homes that went into foreclosure between 2007 and 2012 were actually in the lowest price tier when they were purchased, and most were located in middle- and lower-income areas.

Read the full story and see what's happening in the distressed property market. Boom, Bust, Flip

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Good credit helps when you apply for a mortgage

With a Zen-like statement, the NY Times begins a report on mortgage lending:

Lending terms are easing up for borrowers who have superior credit. But mortgages are no easier to come by for applicants with unexceptional FICO scores.

So, what does that mean?

Samples of FICO scores indicate more loans are being approved with lower scores.  At the same time, down payment amounts are dropping. 

Yet,

Borrowers with scores below 620 — about 28 percent of Americans, Zillow says — couldn’t even get a rate quote. “If you look at the borrowers on the fringe,” said Erin Lantz, Zillow’s director of mortgages, “credit is not any easier to get now than it was three years ago. Despite the improvement in the economy and homes being incredibly affordable and mortgage rates at all-time lows, still about a third of Americans are shut out of the market.”

Read the full article Rewarding Stellar Credit.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content