The Lending Gates Have Opened

Posted by Jessica Botkin on Monday, October 27th, 2014 at 8:01am.    1201 Views

Even Ben Bernanke Can't Refi?! 

It’s clearly beyond time for reform when lending restrictions are SO tight that even the former Chairman of the Federal Reserve can’t snag a refi loan on his own residence. Lawmakers and Realtors have advocated for years to loosen the stringent Qualified Mortgage Rule put into place during the 2008-2010 housing crisis, which prevented a large majority of prospective homebuyers from taking the leap into the American Dream of homeownership.

Truth be told, it doesn’t matter how high consumer confidence is, how many jobs have been created or how phenomenal the “deals” are when over 5million homeowners have weathered the storm of a foreclosure, a new conundrum arises. How do we get these people who would like to re-try their hand at homeownership back in the saddle?

The NAR (National Association of Realtors) has long supported synchronization with the QM/QRM Rule, the FDIC’s recent finalization of the broader QRM, allows lending institutions to once again, extend a hand to prospective homeowners with less than ideal credit conditions.

What does this mean for you? The previously entertained 20-30% blanket down payment requirement, unobtainable for most buyers is no longer being considered. Your local Realtors have lobbied hard to remove this housing market killer from the proverbial table. Perhaps the benefits were best summed up by Frank Keating, President  & CEO of the American Bankers Association. “We are largely pleased with the Qualified Residential Mortgage final rule, which will help ensure the largest number of creditworthy borrowers are able to access safe, quality loan products at competitive prices.”

In conclusion, banks, with more freedom to lend than we’ve seen in many years coupled with reasonable down payment options should continue to steady our already optimistic housing market! Happy Buyers + Happy Sellers= Happy Realtors, Lenders and Economists!


Jessica Botkin

Greater Dayton Ohio Realtor or 937.469.3404

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