St. Louis Real Estate Blog

New Mortgage information for Buyers

January 8th, 2014 1:46 PM by Melanie Mitchell - Team Lead/Listing Specialist

This Friday, 1/10/14, the Consumer Financial Protection Bureau is implementing the new Qualified Mortgage and Ability to Repay rules for all lenders across the country.  The rules pertain to most all mortgages, except for reverse mortgages and home equity lines of credit.  They will even pertain to “portfolio loans” that don’t comply with Fannie Mae/Freddie Mac or FHA/VA/USDA guidelines.
A few things to note:

You’ll almost certainly see greater scrutiny by all lenders in analyzing a potential borrower’s ability to make their mortgage payments.  In other words, proof of income and the probability that it will continue in the future will be vitally important.


  • Points and fees charged by lenders will be restricted.  Some high-priced lenders or mortgage brokers may see an impact.
  • Loans that don’t comply with Fannie Mae, Freddie Mac, FHA, VA or USDA guidelines will have a maximum debt-to-income ratio of 43%.
  • Loans cannot have any of the following features:  terms exceeding 30 years; interest-only payments;  balloon features;  negative amortization;  payments with deferred principal.

 Click here for Gershman Mortgage flyer with more information..


Tom Mueller

Senior Mortgage Advisor with Gershman Mortgage

Posted in:General
Posted by Melanie Mitchell - Team Lead/Listing Specialist on January 8th, 2014 1:46 PM


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