Mortgages and their relationship to the Fed… We open with the former Vice Chair of the Federal Reserve, Janet Yellen and how her influence will affect the landscape of real estate and mortgages .
Business as usual is coming down the pipeline. FHA and 95/5 loans still exist, but we will see more stringent underwriting requirements coming. Qualified Mortgages (QM) – DTI (Debt to Income Ratios) come into the discussion. We look at the revised QM guidelines. QM is now 43% and FHA is still 55% DTI. The QM change favors the investors, not the buyers. This does cap the fees the borrower will be paying for the loan.
The new good faith estimate rules have created a much savvier consumer because in the past, the calculations for a mortgage were not by any means standardized and could often be a surprise or grand mystery to the consumer. The good faith estimates keep the mystery out and room for taking advantage of potential borrowers.
We talk pre-approval, strategizing a stronger position for multi-offer situations. Introducing loan officer in addition to providing a pre-approval.
About Jeff Chalmers
***A nationally renowned and tech-savvy mortgage expert, Jeff Chalmers is famous for his H.O.T. ™ loan process – Honest, Open and Transparent – a laser-focused approach to enhancing the consumer mortgage experience. A 20+ year industry veteran and Vice President of Mortgage Lending for Guaranteed Rate, Jeff is committed to making the “Latte Vision” a reality for today’s consumers. In fact, embracing this vision, he has closed more than 15,000 loans by infusing cloud-based technology with old-fashioned,customer service.