NEW MORTGAGE RULES.. WHAT DO THE NEW “QM STANDARDS” MEAN FOR YOU?

Designed as a safeguard against the loose lending practices that contributed to the 2008 financial crisis, the new Qualified Mortgage standards are intended to ensure that lenders only issues loans to those who can afford to repay them. We asked our friendly neighborhood banker Bob Campbell, Sr. Mortgage Banker at Envoy Mortgage in Walnut Creek, and he feels that most loans actually fall within the new QM guidelines anyway. The larger banks (Wells, Chase, Citibank, etc.) will still make non-QM loans if they feel the risk is minimal and the loan will perform. Want more information, read this detailed article from Forbes on QM standards http://onforb.es/1aXmrJe

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