
Anticipate tougher standards; Expect your loan balance to be limited; Save more money; Gather abundant documentation; Obtain a fully underwritten loan approval; Pay off other debts. And expect your future homebuyer to do the same. On January 10, 2014, lenders must fully comply with the provisions of the Dodd-Frank Qualified Mortgage Standards. Why does this matter? Because lenders want the safe harbor protections bestowed on Qualified Mortgages. Given the legal environment favoring loanowners in response to the collapse of the bubble (loan modification entitlements, Loanoweners Bill of Rights, and so on), lenders will not be eager to stick their necks out and make loans outside the parameters of a qualified mortgage. Imagine what will happen if they do. Let’s say…[READ MORE]