“What Effect Will the New Qualified Mortgage (QM) Rules Mean to You?”

If you are in the real estate business, the mortgage business or anyone connected to these industries, you will be affected. No one will be immune.

I have no idea why the National Association of Mortgage Brokers and the National Association of Realtors are not going to court to stop QM?

One of the main factors of QM, mortgages cannot be approved that exceed 43% debt ratio. Let me put this into a context you can understand. In my mortgage practice 21% of all the mortgages that we did in the last 18 months exceeded 43%. 70% of these mortgages were purchased, which means 1 in 5 homes that these clients bought couldn’t get financed.

Unless stopped, QM goes into effect in January. Home ownership is at its lowest level in 15 years, this trend will continue moving downward.

How do you think QM will affect you?