We have discussed new “QM” (Qualified Mortgage) rules several times, and how the new rules are supposedly tightening lending guidelines.
QM prohibits loans with negative amortization, interest-only payments, balloon payments, and terms greater than 30 years. QM also prohibits loans in which the points and fees are greater than 3% of the loan amount.
None of the above rules apply to JVM Lending b/c we did not offer those loans, and we never charge 3% of the loan amount.
Additionally, for most lenders, QM requires that consumers have a debt-to-income (DTI) ratio of less than 43%. Fannie and Freddie, however, still allow for higher debt ratios.
The 43% DTI cap does not apply to JVM Lending b/c we have lending sources that have not changed DTI guidelines.
Point: 2014 is “business is usual” at JVM Lending. QM has no affect on us. If you are having DTI issues, call us.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646