The Dodd-Frank Act The More We Hear About It The Less We Like It

And we didn't like it much to begin with. Have you heard about "qualified mortgages"?

New horrors of the Dodd-Frank bill seem to come to light every day. The latest we've
learned of is the concept of the "qualified mortgage" the bill codifies into law.
What's a qualified mortgage? Congress has decreed that it's one that adheres to these eight rules:

1. The mortgage amortizes. No option ARMs need apply.
2. It can't result in a balloon payment that's twice as large as the average of
earlier scheduled payments.
3. The borrower's income and financial resources must be verified and documented.
4. Underwriting is based on the full term of the loan, and takes into account taxes,
insurance, and other related payments.
5. If it's an ARM, underwriting must be based on the max rate permitted over the
first five years and full amortization (including taxes, insurance, and other
related payments).
6. The borrower's debt-to-income ratio meets standards set by the CFPB.
7. Related fees can't exceed 3 points.
8. Maximum term is 30 years.

Got all that? The law basically insists that lenders write only mortgages that are qualified under federal standards. For the rest of the story, visit Bankstocks.com

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