|Newton, MA. realtor….West Newton Hill, Realtor
I‘d like to pass this on….
As professionals in the housing market, we must be able to give expert advice to our clients in order to guarantee that they make the best decisions for themselves and their families.
When talking to potential purchasers, we must be able to intelligently discuss the changes that will be taking place in 2013 because of CFPB and QRM. These changes will have a major impact on the mortgage process and a buyer’s ability to finance their purchase of a home.
Consumer Finance Protection Bureau (CFPB)
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the CFPB. Its purpose is explained on their website:
The site goes on to explain:
In 2013, the CFPB will put its stamp on the mortgage industry in the United States. We should keep ourselves aware of the changes that will be coming and their impact on the home purchase experience. One of these changes will be QRM.
Qualified Residential Mortgage (QRM)
The Consumer Financial Protection Bureau (CFPB) and other federal agencies are currently developing guidelines for loans that will have a statistically lower risk of default, based on the underwriting guidelines and product features built into the loan. A loans meeting these new guidelines will be a qualified residential mortgage.
What impact will this have on the mortgage market?
According to the Qualified Residential Mortgage Resource Center: