A bevy of federal regulators and agencies are actively proposing new lending and mortgage qualification rules. Just as enthusiastic as they are about bringing these new rules online to avoid another mortgage and housing crisis are the members of an unlikely coalition of mortgage lenders, housing industry officials, and lawmakers who oppose stringent new rules.
The major provisions of the proposed rules for “Qualified Residential Mortgages” (QRM) would require a minimum 20% down payment and that a borrower’s debt payments not exceed one-third of their income. Critics say that this will force up borrowing costs for lower-income borrowers and first time home buyers who don’t have 20% for a down payment. While these people could probably still get a mortgage, they would be charged higher rates, in some cases high enough to keep them out of the market.
Lenders would be required to hold onto 5% of loans that don’t meet the QRM standards, not allowed to sell them into the secondary market. This keeps more of the risk of mortgages in the hands of the banks, and is intended to avoid the risky lending of the past.
Aligned against these new standards is a group that is seldom if ever seen on the same side of financial issues.
• Mortgage Bankers Association
• Center for Responsible Lending
• National Community Reinvestment Coalition
These groups believe the pendulum has moved too far in the other direction when it comes to reforming mortgage lending. The fear is that these new rules will create a tiered lending market with those holding savings that cover the 20% down payment requirement getting more favorable rates and terms. The others, those least able to afford financial penalties, will be the ones on whom they’re levied.
It may seem like a repeating verse, but the more people who can’t get a mortgage, the more renters in the market. Rental property investment is in a very favorable period never before seen in history.
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
If they pass those
I'm going to have to file bankruptcy! How can they require loans be only 1/3 of your income? What if your income is 50K a month? How are you going to hold rental property to rent out if you need 2/3 extra income every month no matter what kind of monthly income you're bringing in, ESPECIALLY when they aren't going to count all of your rents (so essentially you'll need much more than 2/3 extra income a month? Certainly shouldn't have to come to the same standard as someone making $5K a month. Banks and Federal clueless legislatures are absurd; and if this does happen, expect home prices to plummet further. Much further. Mark my words...
I'm going to take an opportunity to vent about banks and federal interferences..err... I mean regulations... where they have no economic sense whatsoever. Punishing everyone because banks would give a loan to my cat and government mandating banks take on low income buyers so they aren't discriminated against (another WONDERFUL Federal intervention...
) and stereotyping EVERYONE as irresponsible and count on everyone losing their job and source of income is just ridiculous, discriminatory, and poor business practice. Its a way to keep the rich politicians rich and make sure other people can't enter into the housing market altogether. (unless they know about Dean's techniques).
Here's my vent for the day!
I know ONE day SOON I will walk into the small local portfolio lender bank of my dreams who will get me out of the bank fiasco. (not all portfolio lenders are created equal) 
And, I can see it, smell it and taste it. But, in the meantime, I have to let off some of the steam. 
This market is the BEST opportunity for me and my REI company and we’re being shut out by banks who have no clue how REI works.
If the loan will be sold, we’ve been there and done that; no one wants to buy our loans or wants our business anymore (they used to come after us chasing us for business…) and doesn’t want to risk us because we’re too high of a risk because we pay our bills every month and are diligent about making sure we increase the amount of money we are making and our net worth; … oh wait… I mean our DTI number matters more than our fiscal responsibility and character. I can see if we had a ##% DTI and were making only $4-5K a month it being a concern, but we have about $## a month coming in after all the rental expenses are paid once we can refi out of this HML; despite the number our DTI comes to (which, varies by every lender by over 30% depending upon which legitimate long term income they decide they don't want to count as long term legitimate income at their leisure (whether it be our 14 and 7 year rental properties that have NEVER had a vacancy or my husband's flex benefits that we've been receiving for over 11 years, or the newest rents on our newly acquired property 
).
We are tired of constantly being classified as ‘high risk crap customers’ when we’re the ones making our payments and doing what it takes to make sure we can always pay our bills and retire early despite what the economy is doing and where the job market is. We are even going so far as selling our house, which we absolutely love and can easily afford every month because BANKS tell us we can’t afford it because an extra $#K a month is not enough for us to live on and stay as responsible as we have for the past 25 years. (??? This is nuts!) We are paying for all the 'wanted to be investors' out there who saturated the market during the boom, and all the people who went and bought houses they couldn’t afford due to government mandated requirements that banks couldn’t’ discriminate against low income families. Then when the banks go bust they get a billion dollar bail out on all the taxpayer’s dime. Don't get me wrong; I’m ok with the 11-20% that legitimately lost their jobs and are just in a bad position and/or victim of the predatory loans the banks offered to 100% of everyone and their dogs. OK, so a lot of this is satirist babble, but I’m tired of being counted as ‘investor scum’ by banks; it’s a stereotype we’ve been labeled with that doesn’t fit us even a fraction of a degree. It felt good to write this out, sorry. Go back to your regularly scheduled REI stuff. I hope someone got a laugh out of this.
Hey Tammy,
tell us how you really feel!!
BTW, you're right on the money about the eventual outcome. Don't you wonder who the hell is running this operation we call the USA?
Bill,
Definitely not 'the people'
I think we're putting people in our government that majored in clown school. 
"We the People"
of the United States of America are only good for ONE thing....TAXES -so the Government can continue the insane spending spree
maplight
If you want to see who is running this operation called the US of A, go to maplight.org....you can see how the politicians vote based on who contributes how much to their campaigns. It's quite evident that money greases the wheels of politics. You can't make blanket statements about republicans and democrats anymore. It's comical how they break the party line when it comes to money, but they call it "reaching across the aisle."
Yes
and then I hear the announcement how social security, disability payments and veterans checks may not be forthcoming if an agreement isn't reached with the debt ceiling (raise the credit balance and devalue our currency even further). Umm... How come I heard no mention of Congress and all the politicians not getting their pay?
Its absurd how things are so twisted and corrupt. And no, political party doesn't matter. They're all crooked!