Wednesday, April 16, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Realtors call for borrowing changes

WASHINGTON, D.C. — Congress should consider redefining the new ability-to-repay requirements for Qualified Mortgages to avoid limiting affordable borrowing options for creditworthy buyers, said the National Association of Realtors in recent testimony before the House Financial Services Committee.

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.”

LEAVE A COMMENT

Discussion | No comments

.

News

 
Greenwood School being restored

By Rebecca Murphy | From Page: A1 | Gallery

Cal Fire increasing staffing, hiring

By Cal Fire | From Page: B1

 
EID restricts watering days

By Michael Raffety | From Page: A1, 9 Comments

Lover’s Leap fall injures man

By Tahoe Tribune | From Page: A1

 
EDH Fire Dept. annexing Latrobe

By Noel Stack | From Page: A1, 5 Comments

Motorcycle fatality in Greenwood

By Cole Mayer | From Page: A1

 
Tea Party meeting April 17

By Tea Party Patriots Of El Dorado Hills | From Page: A3, 16 Comments

 
Town Hall Meeting on Underage Drinking May 1

By El Dorado Hills Community Vision Coalition | From Page: A6

Floating body not a body

By Cole Mayer | From Page: A7

 
Old mill a goner

By Dawn Hodson | From Page: A11, 4 Comments | Gallery

.

Opinion

 
My turn: A fair California flat income tax

By Mark Belden | From Page: A4

DA Pierson has been outstanding

By Mountain Democrat | From Page: A4, 8 Comments

 
.

Letters

A great big thanks

By Letters to the Editor | From Page: A5

 
Murder? Suicide?

By Letters to the Editor | From Page: A5, 3 Comments

‘Drive Clean’

By Letters to the Editor | From Page: A5, 2 Comments

 
Middle class getting poorer?

By Letters to the Editor | From Page: A5, 10 Comments

Real estate lies

By Letters to the Editor | From Page: A5, 1 Comment

 
.

Sports

Outside with Charlie: Switch gear

By Charlie Ferris | From Page: A8

 
Ponderosa volleyball is a family affair

By Jerry Heinzer | From Page: A8 | Gallery

Aussie team makes visit

By Special to the Democrat | From Page: A8

 
Griz have challenging day

By Mike Bush | From Page: A8 | Gallery

Roundup: April 15, 2014

By Democrat Staff | From Page: A9 | Gallery

 
.

Prospecting

Runners stampede for Sugarloaf scholarships

By El Dorado County Office of Education | From Page: B2 | Gallery

 
At a glance: Take aim on fun

By Mimi Escabar | From Page: B2

Men to walk a mile in her shoes

By Center For Violence-Free Relationships | From Page: B2 | Gallery

 
Team works to fight disease

By Placerville Kiwanis | From Page: B3

 
COOL School is accepting applications

By Rescue Union | From Page: B4

Band of Miwoks fund mission

By Shingle Springs Band Of Miwok Indians | From Page: B12

 
.

Essentials

Crime Log: March 25-27

By Cole Mayer | From Page: A2

 
Weather stats 4-15-14

By Michael Raffety | From Page: A2

.

Obituaries

Numa Edward “Ed” Roberts

By Contributor | From Page: A2

 
Ronald Russell Rohrer

By Contributor | From Page: A2

.

Real Estate

.

Comics

Sudoku

By Contributor | From Page: A10

 
Flying McCoys

By Contributor | From Page: A10

Speed Bump

By Contributor | From Page: A10

 
Working It Out

By Contributor | From Page: A10

Shoe

By Contributor | From Page: A10

 
Rubes

By Contributor | From Page: A10

New York Times Crossword

By Contributor | From Page: A10

 
Tundra

By Contributor | From Page: A10

Horoscope, Thursday, April 17, 2014

By Contributor | From Page: A10

 
Horoscope, Wednesday, April 16, 2014

By Contributor | From Page: A10

TV Listings

By Contributor | From Page: A10