Freddie Mac & QM

With the implementation of Qualified Mortgages (QM) and Ability to Repay (ATR), Freddie Mac has announced that Loan Prospector will be providing new feedback messages on higher priced covered transactions 7/1 and 10/1 ARMs, the higher priced covered Relief Refinance mortgages, and the Home Possible  mortgages with terms over 30 years as follows. The LC message code […]

Qualified Mortgage Rule now in Effect

Last week, the Consumer Financial Protection Bureau’s (CFPB) new Qualified Mortgage (QM), also known as the ability-to-repay, rule went into effect. The new rule is about helping the borrower understand the true cost of the mortgage they apply for. It is also designed to keep lenders from lending money to borrowers who can’t afford to make […]

Qualified Mortgages (QM) Guidelines

The Consumer Financial Protection Bureau (CFPB) amended Regulation Z, which implements the Truth in Lending Act (TILA), to prohibit lenders from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan.  (In other words Congress wants to make sure loans are really, really, really “safe” to prevent another mortgage crisis). […]