Mortgage Changes

As of Jan. 1 this year, there are new mortgage rules in place and some mortgage products have been eliminated. These changes have been legislated as an outgrowth of the Dodd-Frank Act and are known as QMs (qualified mortgages) or “ability to repay” mortgages.

The rules have largely been in place in practice for a few years, and have been in place longer in many banks, but now they are official requirements for loans that will enter the secondary market (most mortgages). They are intended to make loans more in line with a borrower’s ability to repay the loan.

Portfolio lenders (banks or others that fund and hold their own mortgages) can continue to offer the discontinued products, so if you need one of the items on the “discontinued list” below, contact your real estate broker to help you locate a specialty lender.

Mortgage products no longer available:

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