The following is from Brenner Real Estate Group's Resse Stilgiano and appears in his blog "Reese on Real Estate"
One of the after-effects of the recent financial crisis is the passage of the Dodd-Frank Mortgage Reform. Once the changes come into effect in January of 2014, it might be harder for you to qualify for a mortgage. What’s the reason for the reform, you wonder? Well, some financial services companies were underwriting loans and then selling them to lenders. Because they were getting very lucrative upfront fees for originating these loans, some of these companies gave loans to people that couldn’t be reasonably expected to pay them back. So, the Dodd-Frank Act was passed in 2010 to try and stop this kind of predatory lending practice, according to Mitchell D. Weiss, an experienced financial services industry executive, author, and adjunct professor of finance at the University of Hartford. And now, the act is being reformed to protect consumers even further. Let’s take a closer look at eight factors you’ll need to consider to qualify for a loan once the reform goes into effect in January.
See Reese on Real Estate for the rest of this article