In July of 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act - The name Dodd-Frank... comes from the original proponents of the act (Barney Frank - House of Representatives/(d) MA - and, former Senant House Banking Committee Chairmen Chris Dodd /(d) CT.
- Among the many sections of the Act is - Title XIV - Mortgage Reform and Anti-Predatory Lending Act, which directly affects consumers who desire to purchase real estate and finance that purchase. And one of the items includes something called "QRM" Qualified Residential Mortgage - in essence it could mean that consumers will have to come up with 20% down to purchase a home... Ouch! Just consider what it would take to save 10% down (with a median income of $47,732) - 10 YEARS*! - (*assumes 5.2% savings rate, all for home purchase (i.e .none for retirement, college or repairs) - what would that be for a 20% downpayment?
The National Association of Realtors is actively working to curb the QRM rule - Please watch this video -
QRM
- Interest rates are incredibly low right now, if there were ever a time to buy, it would be now. And hopefully with the efforts of organizations like the NAR, this aspect of the Dodd-Frank...act, we won't see this QRM rule become a reality!
