The real estate landscape is constantly changing, thanks to a regulatory environment that is learning from its past. After the housing bubble burst, fueled by the sub-prime lending market crash, lawmakers were in a frenzy to control the damage. The question is, though, with regulatory belt-tightening, will there be unintended consequences? How can this actually prevent homeowners from going underwater?
That’s where staying up-to-date comes into play, and there are few experts better versed in the new mortgage alphabet soup than the folks at Guardian Mortgage. If you haven’t the faintest clue as to what QM, QRM, and Dodd-Frank are, then perhaps you should read this fantastic article from Guardian themselves:
The Dodd-Frank Consumer Protection Act, which was signedinto law in July 2010, was designed to restore consumer confidence in the housing industry. The law establishes requirements, referred to as Qualifed Mortgage (QM) and Qualifed Residential Mortgages (QRM) that must be met before a mortgage, new or refinanced, can be created.
Need to bone up? Read the whole article from Guardian Mortgage.