Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

HUD publishes its final definition of a qualified mortgage

Rule limits upfront points and fees, with a few exceptions

The U.S. Department of Housing and Urban Development launched its official internal definition of a qualified mortgage – or a loan that can be insured, guaranteed or administered by the department.

The standard goes into play alongside the ability-to-repay rule, which takes effect on Jan. 10, 2014.

Any party dealing with HUD loans must fully understand the requirements before that date.          

From a very broad perspective, the HUD QM definition says loans in the system must require periodic payments without risky features. In addition, they cannot have terms exceeding 30 years, must be insured by FHA or HUD and have to limit upfront points and fees to no more than 3% with some exceptions for certain types of loans.

For instance, loans tied to Title 1 manufactured housing and property improvement loans are giving a safe harbor under the qualified mortgage definition. Other loans exempt from extra scrutiny include those tied to the Indian Home Loan Guarantee Program and the Native Hawaiian Housing Loan Guarantee Program.

"The rule designates loans insured under these programs as Safe Harbor Qualified Mortgages regardless of upfront points/fees and APR to APOR ratio so as not to interfere with current lending practices until appropriate parameters can be determined," HUD pointed out.  

 HUD also is accepting the CFPB’s list of transactions that are currently exempt from the ability-to-repay rule.

Those include reverse mortgages, bridge loans of 12 months or less, construction-to-permanent loans for 12 months or less for a construction phase and credit extensions from the Housing Finance Agency, the Community Development Financial Institutions and credit tied to parts of the Emergency Economic Stabilization Act of 2008 among others.

Click here to read more about the rule, the QM definition and any existing exceptions.

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