Counter
Current Mortgage Rate
PRODUCT +/- Rate Last week
30 year fixed Graph Icon Arrow 4.01% 3.96%
15 year fixed Graph Icon Arrow 3.14% 3.12%
5/1 ARM Graph Icon Arrow 3.15% 3.08%

 Rate disclaimer

PRODUCT +/- Rate Last week
30 year fixed refi Graph Icon Arrow 4.05% 3.99%
15 year fixed refi Graph Icon Arrow 3.16% 3.14%
10 year fixed refi Graph Icon Arrow 3.12% 3.01%
PRODUCT +/- Rate Last week
60 month used car loan Graph Icon Arrow 3.19% 3.19%
48 month used car loan Graph Icon Arrow 3.18% 3.18%
60 month new car loan Graph Icon Arrow 3.41% 3.26%
PRODUCT +/- Yield Last week
6 Month CD Graph Icon Arrow 0.71% 0.71%
1 Year CD Graph Icon Arrow 1.20% 1.21%
2 Year CD Graph Icon Arrow 1.34% 1.36%
PRODUCT Rate
MMA and SAVINGS 0.56%
$10k MMA 0.52%
Interest Checking 0.43%
Compare Mortgage Rates
Type of Loan:
Home Description:
Your Credit Profile:

Mortgage Brokers & Lenders Directory

You can search our directory or Mortage Brokers & Lenders and get a current quote on 30 year fixed mortgage rates as well as current mortgage interest rate for other loan programs.

Mortgage Brokers:
or 
MORTGAGE NEWS

New Rules for Mortgage Lenders Go Into Effect January 21

Written By:
January 10, 2013 at 2:58 PM

CFPB New Mortgage Rules

Starting January 21, mortgage borrowers will know precisely what their mortgage product cost them and other terms based on new regulations released by the Consumer Financial Protection Bureau (CFPB). The primary purpose of the new rules is to prevent mortgage lenders from making loans to borrower who do not have the resources to pay off the mortgage, according to CFPB’s director Richard Cordray.

Purpose of Mortgage Industry Guidelines

The impetus behind the requirements was the mortgage crisis, which aggravate the financial meltdown in late 2008. The eventual housing market collapse resulted in historic levels of mortgage delinquencies and foreclosures.

Many mortgage lenders that originated home loans lowered the underwriting criteria. As a whole, the mortgage lending industry failed to enforce minimum credit scores or adequately verify borrowers’ documentation. Banks really did not make a solid determination of the ability of borrowers to repay their home mortgages.

The Dodd-Frank Wall Street Reform and Consumer Protection Act give the CFPB the authority to implement major changes to the U.S. residential mortgage system--especially centered on the “ability-to-repay” criteria.

Understanding the New Rules

William Emerson, the president of Quicken Loans, states that the new guideline covers virtually the entire mortgage lender industry—credit unions, savings and loans, community lenders, and national banks.

Going forward, loans that meet the new standards required by CFPB to approve only “qualified mortgage.” Qualified mortgages protect lenders from litigation by homeowners or mortgage-backed security or bond investors.

Here are the seven standards lenders must use to determine a qualified mortgage:

  1.  Ensure the borrower has the income and assets adequate for the loan repayment;
  2. Verify the borrower’s employment history;
  3. Require minimum credit scores
  4. Loan has affordable monthly payments
  5. Borrower can afford to make other debt s related to the property—home equity loan
  6. Borrower must have the resources to pay for other expenses like home insurance, property taxes, etc.
  7. Mortgage lenders must consider the borrowers’ other obligations – student loan, auto loan, Credit scores must meet minimum standards;

If t a borrower cannot meet all of the guidelines listed above, it is still possible for the person to obtain a mortgage. The loan cannot exceed 43% of the individual’s pre-tax income.

Restrictions on Certain Products

The rules prevent mortgage lenders from using “interest-only loans” or “negative-amortization loans” to qualify borrowers for mortgages. The mortgage balances for these loans grow over time. In addition, lenders cannot use teaser rates loans to make a buyer eligible for a mortgage.

The interest rate on these teaser rate products adjusts after the initial term expires. The rules also prohibit loans from exceeding 30 years. Mortgage lenders cannot charge borrowers excessive points and other upfront fees.

The regulation does not prevent lenders from offering these financial products to their customers. The sole purpose of putting the client into this type of mortgage cannot be to quality the person for a loan.

Other Changes

Borrowers who seek jumbo loans must also qualify under the ability -to-repay rule. Jumbo loans are not guaranteed by Fannie Mae or Freddie Mac. However, industry experts expect banks will follow the qualified mortgage criteria to protect themselves. The new rules do not apply to borrowers completing mortgage refinances for adjustable-rate mortgage subprime loans and other risky mortgage products.

Although the rules go into effect in a few weeks, mortgage lenders have 12 months to fully implement the guidelines into their operations.

4

3

5

0

More Mortgage News
Please sign-in with Facebook.


Mortgage Refinance by State
Alabama Mortgage Refinance Illinois Mortgage Refinance Montana Mortgage Refinance Rhode Island Mortgage Refinance
Alaska Mortgage Refinance Indiana Mortgage Refinance Nebraska Mortgage Refinance South Carolina Mortgage Refinance
Arizona Mortgage Refinance Iowa Mortgage Refinance Nevada Mortgage Refinance South Dakota Mortgage Refinance
Arkansas Mortgage Refinance Kansas Mortgage Refinance New Hampshire Mortgage Refinance Tennessee Mortgage Refinance
California Mortgage Refinance Kentucky Mortgage Refinance New Jersey Mortgage Refinance Texas Mortgage Refinance
Colorado Mortgage Refinance Louisiana Mortgage Refinance New Mexico Mortgage Refinance Utah Mortgage Refinance
Connecticut Mortgage Refinance Maine Mortgage Refinance New York Mortgage Refinance Vermont Mortgage Refinance
Delaware Mortgage Refinance Maryland Mortgage Refinance North Carolina Mortgage Refinance Virginia Mortgage Refinance
District of Columbia Mortgage Refinance Massachusetts Mortgage Refinance North Dakota Mortgage Refinance Washington Mortgage Refinance
Florida Mortgage Refinance Michigan Mortgage Refinance Ohio Mortgage Refinance West Virginia Mortgage Refinance
Georgia Mortgage Refinance Minnesota Mortgage Refinance Oklahoma Mortgage Refinance Wisconsin Mortgage Refinance
Hawaii Mortgage Refinance Mississippi Mortgage Refinance Oregon Mortgage Refinance Wyoming Mortgage Refinance
Idaho Mortgage Refinance Missouri Mortgage Refinance Pennsylvania Mortgage Refinance