Relocation comes with a lengthy to-do list and its own lingo. Last month, two new words were added to the language of relocation – qualified mortgages – the new rules that now govern who gets approved for a loan and who doesn’t.
So what’s a qualified mortgage, commonly called QM in the world of relocation, banks and real estate?
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act created the Consumer Financial Protection Bureau, which wrote the newly enacted rules on how mortgages are approved. All lenders must now assess income, assets, credit history, other debt obligations and employment status. If lenders do not follow through on these evaluations, borrowers who cannot make their mortgage payments can contest foreclosures on the grounds that the lenders did not properly judge their financial standings and risk. Read More