Here are my updates for October 22, 2013
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”
Proposed 30 percent down payment requirement stoking anxiety
In the face of fierce opposition from mortgage bankers and consumer advocates, federal regulators are assessing proposed mortgage rules that would include a down payment requirement of 30 percent on a certain class of loans, columnist Ken Harney writes.
“QRM-Plus” is an alternative to a much laxer proposed definition of a “qualified residential mortgage” (QRM). That definition does not include a down payment requirement at all.
The ultimate definition of QRM is crucially important to the future of mortgage finance because QRM mortgages will be the only mortgages that banks will be able to sell without being forced to take on any of their risk.
Since banks often prefer to sell loans without retaining risk, many may shy away from originating mortgages that do not fit QRM guidelines.
The Mortgage Bankers Association, which opposes the proposal, estimates that only 18 percent of people who bought homes last year would have passed QRM-Plus muster, Harney reports.