What does the Ability-To-Repay and Qualified Mortgage Rules mean for borrowers?
The new mortgage regulations could mean that borrows may not have as many lender options when choosing a mortgage. Because the majority
of lenders sell their mortgages to government-sponsored enterprises such as Fannie Mae and Freddie Mac, they will need to change their
approval standards to meet the new Qualified Mortgage Regulations and only approve mortgages that fall within these guidelines.
Fannie Mae and Freddie Mac will not buy a mortgage that does not meet the Qualified Mortgage Rules. This may limit the number of
lenders a borrower can look to when needing a mortgage. Borrowers who think they may not meet these new guidelines will need to find
a lender who has the ability to keep their mortgages within their own loan portfolio. These lenders may be able to help a borrower
obtain the financing they need to achieve their goals.
The information presented in this publication is general in nature; it is not our intention to provide specific
advice to individuals or a comprehensive discussion of the subject matter. We suggest that you consult with your
financial or tax advisor, accountant or attorney to obtain specific advice or comprehensive information.