New QM Rules
This is the last time we will discuss this, as we have beaten this dead horse pretty severely. QM news is, however, at the forefront today and cannot be ignored: QM rules officially become effective today. QM stands for Qualified Mortgage, and the rules are an offshoot of the Dodd-Frank bill.
As we stated before, the rules limit the amount of fees that can be charged, and they limit debt ratios to 43%. This initially sent shudders of fear through the industry, but many lenders (including JVM and Opes Advisors) are not subject to the 43% cap for conventional and FHA loans.
Despite QM, 2014 will be business as usual.
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