It is a Qualified Residential Mortgage and is a proposal put forth by federal regulators to try and make sure that lenders cannot make risky loans just for a quick profit. Protecting the economy at large and consumers as well.While the idea is a good one at heart the proposed restrictions would make it vastly more difficult for the average consumer to obtain financing for a home purchase. Many consumers would be shut out of the housing market all together.
An article on the rismedia site says:
RISMEDIA, August 3, 2011—A proposed rule by federal regulators to impose a minimum 20 percent down payment, stringent debt-to-income ratio requirements and rigid credit standards will deny millions of Americans access to safe, low-cost mortgages, according to the National Association of Realtors®.
Read the whole article on RIS MEdia Site
There is no question that some regulations on risky and predatory lending need to be put in place. There is no question that there were big problems with the way things use to be. However, a middle ground needs to be found, in any new regulations , so that the very consumers the regulators are trying to protect are not shut out of the market to the extent that they don't need any protection since they can't participate anyway!
If you are considering a home purchase anytime in the future I would encourage you to pay attention to the political debate on this subject. Let your representatives know that access to financing for your dream of home ownership is important to you. This access to finance issue and the mortgage interest tax deduction are probably the two most important political issues you can't afford to ignore if you are interested in owning your own home.
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