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How Do “QM” Rules Affect Lending? They Don’t at JVM Lending

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.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646