Friday, October 31, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Realtors call for borrowing changes

By
From page HS10 | June 21, 2013 |

Subscription Required

Thank you for reading the MtDemocrat.com digital edition. In order to continue reading this story please choose one of the following options.

Current Subscribers
If you are a current subscriber and wish to obtain access to MtDemocrat.com, please select the Subscriber Verification option below. If you already have a login, please select "Login" at the lower right corner of this box.

Subscriber Verification

Special Introductory Offer
For a short time we will be offering a discount to those who call us in order to obtain access to MtDemocrat.com and start your print subscription. Our customer support team will be standing by Monday through Friday, 8am to 5pm to assist you.

Call and Save! (530) 344-5000

If you are not a current subscriber and wish not to take advantage of our special introductory offer, please select the $12 monthly option below to obtain access to MtDemocrat.com and start your online subscription

Help?

NAR President Gary Thomas implored Congress to revisit the definition of fees and points applied to affiliated mortgage lenders that require the counting of title company charges, the amount of homeowner’s insurance held in escrow, loan level price adjustments, and payments made by lenders in wholesale transactions towards the 3 percent cap in the QM rule. Thomas said the current calculation of fees and points discriminates against affiliated title companies, small and mid-size lenders, community banks and credit unions.

“Many of the mortgages available from affiliated businesses might not qualify as a QM without a higher interest rate,” said Thomas, broker-owner of Evergreen Realty, in Villa Park. “As the leading advocate for housing issues, NAR is committed to working with Congress to fix the unintended consequences of the ability-to-repay rule. To that end, NAR supports the bipartisan H.R. 1077/S.949, the Consumer Mortgage Choice Act, which would address the problematic fees and points definition and ensure broad consumer choice and access to safe, affordable mortgages.”

In his testimony, Thomas said that H.R. 1077 is essential to maintain competition and consumer choice in mortgage origination. Without this legislation, one-quarter to as much as one-half of loans currently being originated by affiliated lenders would likely not be eligible for the QM safe harbor, he said. Consequently, those loans would likely not be made or would be concentrated amongst the largest retail lenders, thereby limiting consumer choice.

Thomas said another area of concern about QM underwriting standards is the 43 percent debt-to-income limit on jumbo and non-government backed loans. He said it is particularly problematic in high cost areas where high-income borrowers are more likely to obtain jumbo financing. Thomas urged support for greater flexibility with regard to DTI limits so that credit would not be restrained in high cost communities.

Thomas also urged Congress to support regulatory changes to the proposed Qualified Residential Mortgage standards to substantially mirror the broad QM definition. NAR believes that this would prevent possible issues with creating another class of loans, such as those that are QM but not QRM, which could affect their overall marketability and cost.

“Congress and the Consumer Financial Protection Bureau have done important work to protect consumers from predatory lending products and processes that led to the mortgage crisis,” said Thomas. “Now is the time for additional steps to improve the QM and align the QRM with it so that consumers who have the ability to repay their loans will have access to affordable credit.”

Comments

comments

.

News

Heard over the back fence: Go the extra mile

By Bob Billingsley | From Page: B1

 
Poor Red’s sold to brothers

By Wendy Schultz | From Page: A1 | Gallery

Los Rios trustee candidates face off before taxpayers group

By Dawn Hodson | From Page: A1 | Gallery

 
Censuring Prada asked

By Michael Raffety | From Page: A1

Ghostly leftovers from Gold Rush

By Charlotte Sanchez-Kosa | From Page: A1 | Gallery

 
Community Clean-up Day Nov. 1

By City of Placerville | From Page: A3

City Council: Smith and Nixon endorsed

By News Release | From Page: A3

 
Trick-or-treat … drink-or-drive

By Placerville Police | From Page: A3

Murder suspects arraigned

By Dawn Hodson | From Page: A4

 
.

Letters

What is Measure K all about?

By Letters to the Editor | From Page: A6

 
Todd White is a man of integrity

By Letters to the Editor | From Page: A6

Where do you want to live?

By Letters to the Editor | From Page: A6

 
Final thoughts

By Letters to the Editor | From Page: A6

Taxpayers pay Penn

By Letters to the Editor | From Page: A6

 
Look who’s running

By Letters to the Editor | From Page: A6

Hypocrisy reigns in the land use arena

By Letters to the Editor | From Page: A6

 
Running from their records

By Letters to the Editor | From Page: A6

Vote yes on Measure M and O

By Letters to the Editor | From Page: A6

 
Follow the money at election time

By Letters to the Editor | From Page: A7

Deceptive campaigning by McNeil and Stanton

By Letters to the Editor | From Page: A7

 
Vote Hus for EDH Fire Board

By Letters to the Editor | From Page: A7

Why isn’t Stanton endorsed by the Cal Fire Union?

By Letters to the Editor | From Page: A7

 
Rules apply to all

By Letters to the Editor | From Page: A7

Jordan and Brown for EDUHSD board

By Letters to the Editor | From Page: A7

 
Yes on Measure K

By Letters to the Editor | From Page: A7

Vote for McClintock

By Letters to the Editor | From Page: A7

 
Supervisor election

By Letters to the Editor | From Page: A7

GDPUD ‘cost-cutting’

By Letters to the Editor | From Page: A7

 
.

Sports

Outside with Charlie: Fall tune-up

By Charlie Ferris | From Page: A9

 
Cougars crush Florin, await playoffs

By Jerry Heinzer | From Page: A9 | Gallery

Football: Grizzlies ready for big game

By Mike Bush | From Page: A9

 
Union Mine girls sweep Wolverines

By Jerry Heinzer | From Page: A9 | Gallery

El Dorado fights off D’back challenge

By Jerry Heinzer | From Page: A9 | Gallery

 
Roundup: Oct. 29, 2014

By Democrat Staff | From Page: A10

.

Prospecting

‘Carrie’ presents an important message

By Pat Lakey | From Page: B1 | Gallery

 
Things to do: Oct. 31, 2014

By Democrat Calendar | From Page: B2

Arts Council celebrates move with open house

By El Dorado Arts Council | From Page: B2 | Gallery

 
Concert to feature patriotic favorites

By Capitol Pops Concert Band | From Page: B2

Irish treasure visits Harris Center

By Harris Center for the Arts | From Page: B3

 
Wine and treat at Sierra Vista

By Democrat Staff | From Page: B3

Exhibition to showcase jewelry and small metals

By California State Unversity, Sacramento | From Page: B3

 
Time out: Sweet Score makes points across the board

By Earle Camembert | From Page: B4

See ‘The Met: Live in HD’ in EDH

By Fathom Events | From Page: B4

 
State Indian Museum offers November events

By State Indian Museum | From Page: B5

Diego El Cigala to captivate the audience

By Harris Center for the Arts | From Page: B5

 
Master Food Preserver: Pumpkin and winter squash fun

By Monique Wilber | From Page: B6

Musical boonanza

By Democrat Staff | From Page: B10 | Gallery

 
Electronic Bassnectar brings show to MontBleu

By Montbleu | From Page: B12

 
Madera hosts annual Pomegranate Festival

By Yosemite Sierra Visitors Bureau | From Page: B13

Art exhibit examines PTSD

By California State Unversity, Sacramento | From Page: B14

 
.

Essentials

Crime Log: Oct. 20

By Cole Mayer | From Page: A2

 
Lake levels 10-30-14

By Michael Raffety | From Page: A2

.

Obituaries

Robert “Glen” Buford

By Contributor | From Page: A2

 
John Franklin Himmel

By Contributor | From Page: A2

Charles Purcell Ripley

By Contributor | From Page: A2

 
.

Real Estate

The softer side of real estate

By Ken Calhoon | From Page: HS2

 
When customer service falls in the toilet

By Marni Jameson | From Page: HS3

Heartwood laid out for easy family living

Press Release | From Page: HS6

 
California home sales maintain pace in September

Press Release | From Page: HS10

 
Selling your home: Price it right!

By Special to the Democrat | From Page: HS15

.

Comics

Rubes

By Contributor | From Page: A11

 
Long Story Short

By Contributor | From Page: A11

TV Listings

By Contributor | From Page: A11

 
Speed Bump

By Contributor | From Page: A11

Tundra

By Contributor | From Page: A11

 
Shoe

By Contributor | From Page: A11

Sudoku

By Contributor | From Page: A11

 
New York Times Crossword

By Contributor | From Page: A12

Horoscope, Sunday, November 2, 2014

By Contributor | From Page: A12

 
Horoscope, Saturday, November 1, 2014

By Contributor | From Page: A12

Horoscope, Friday, October 31, 2014

By Contributor | From Page: A12

 
.

Home Source

The softer side of real estate

By Ken Calhoon | From Page: HS2

When customer service falls in the toilet

By Marni Jameson | From Page: HS3

Heartwood laid out for easy family living

Press Release | From Page: HS6

California home sales maintain pace in September

Press Release | From Page: HS10

Selling your home: Price it right!

By Special to the Democrat | From Page: HS15