New rules will impact ALL future mortgages

[tooleman694]

This would hurt people in Cali with no debt since FHA allows your frontend to take up all of the backend, this is how people earning 100k a year buy a house in Cali.

[Mike_B03]

Now someone else is saying that it is in fact the back end ratio, not front end. They are suggesting that I contact my lender and ask when they are implemently the new rules.

Should I ask? Or just let them bring it up? Damn this is a never ending bunch of stress!

[JM-AM]

Mike you will be fine.

Stop stressing

Banks and lenders are not going to want to lose good deals already being processed.

They will start to implement their programs accordingly.

[Mike_B03]

There's more info on this at the CFPB website: http://www.consumerfinance.gov/

Also a field hearing on mortgage policy earlier today featuring remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public: http://www.consumerfinance.gov/blog/live-from-baltimore-md/

[Mike_B03]

Another comment from a different forum...

"The new CFPB rules don't go into effect until 1/1/2014, and even then, there's some latitude. But make no mistake, 2014 will probably be the worse year in real estate if QM remains, no one can qualify, prices will have to drop to entice qualified buyers. We will have to go thru a bit of pain to get this overturned."

[tooleman694]

Yeah it will make FHA obsolete pretty much.

[JM-AM]

Im sure plenty will still qualify. Just wont be as easy as before.

If i take my own situation my DTI is only at 29% for my entire debt including things that have no impact on a loan, such as cell phone, car insurance, cable bill, etc etc.

All our situations are different.

Keep in mind the banking industry has lots of political influence, if they are losing to much money I can bet changes will come to append the present changes.

[tooleman694]

This would stop me from buying. I cant hit 43 percent, no way. I would have to wait till my Wife's credit scores increase.

[MrChairman]

I don't really see the new law changes hurting housing or the mortgage industry as a whole. We all know that if a LO is determined he or she will find that grey area to make the numbers work.

[tooleman694]

I read that a 3rd of borrowers are over 43 percent DTI. thats is kind of big.