qualified mortgage (qm) changes in january 2014 (benchmark mortgage)
DESCRIPTION
QM is a set of changes coming from CFPB to the mortgage industry in January 2014. Benchmark Mortgage (Ark-La-Tex Financial Services, LLC) is prepared for these government changes. We want you to ensurer your lending partner is ready and that your buyers will have no issues closing after these changes go into effect. http://benchmark.us http://whoisbenchmark.comTRANSCRIPT
![Page 1: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/1.jpg)
Big Changes are coming!
[QM]
...or are they?
![Page 2: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/2.jpg)
You’ve probably heard
all the buzz about
the “CFPB” making lots
of changes in 2014.
…
![Page 3: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/3.jpg)
If you are like most people,
you heard the word CHANGE
and decided that it was
probably not a good thing...
![Page 4: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/4.jpg)
But before we get into
what's to come in 2014,
lets take a step back...
![Page 5: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/5.jpg)
Leading up to
the mortgage crisis,
mortgages were
extremely easy to obtain.
![Page 6: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/6.jpg)
Since 2009, creditors were
required to follow rules
that prohibited making higher
priced mortgage loans
without assessing
the consumer’s ability to
repay the loans.
![Page 7: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/7.jpg)
In 2010, congress adopted
a similar (but NOT identical)
requirement for virtually
all closed-end residential
mortgage loans.
![Page 8: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/8.jpg)
While all of this was going
on, Congress also established
a presumption of compliance
with the ability to repay
requirements for a certain
category of mortgages,
called “qualified mortgages”
(QM)
![Page 9: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/9.jpg)
You may remember the final
ability-to-repay and qualified
mortgage rule being issued in
January of 2013.
But, this rule was amended
in May and July and
will go into effect
in January of 2014.
![Page 10: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/10.jpg)
The ruling might cost you
your next closing,
but we doubt it,
because you work
with Benchmark
![Page 11: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/11.jpg)
Lets discuss what
this really means
for all of us in 2014
![Page 12: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/12.jpg)
The final rule contains 8 very
important underwriting elements to
confirm a borrowers ability to repay
1. Current or reasonable expected income and assets
2. Current employment status
3. Taking into account monthly payment on said debt
4. Take into account revolving debt
5. Take into account mortgage related obligations
6. Take into account child support and alimony
7. Take into account residual income
8. Credit history
![Page 13: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/13.jpg)
Does this
Sound familiar?
![Page 14: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/14.jpg)
It should if you have been
working with Benchmark!
![Page 15: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/15.jpg)
From debt-to-income
calculations and
verifications of employment,
these 8 items have already
been a part of our
processes and procedures
and help us uphold
our core values.
![Page 16: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/16.jpg)
Debt-to-Income Ratio
43% with ability to go higher
on FHA, VA, USDA
and DU approval (45%)
![Page 17: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/17.jpg)
Interest Only
![Page 18: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/18.jpg)
Interest Only
![Page 19: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/19.jpg)
Balloon Payments
![Page 20: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/20.jpg)
Balloon Payments
![Page 21: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/21.jpg)
Negative
Amortization
![Page 22: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/22.jpg)
Negative
Amortization
![Page 23: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/23.jpg)
Along with “Ability to Repay”,
a [QM] loan must also not
exceed 3% of the total loan
amount in points and fees.
![Page 24: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/24.jpg)
While these changes may be
new for the industry in 2014,
it won’t be for Benchmark!
![Page 25: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/25.jpg)
Our team of experts
will continue to
set the industry standard,
and guide you
along the way!
![Page 26: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/26.jpg)
Thank you so much
For trusting your clients
With a benchmark
mortgage professional
![Page 27: Qualified Mortgage (QM) Changes in January 2014 (Benchmark Mortgage)](https://reader033.vdocuments.net/reader033/viewer/2022052906/558c8883d8b42a013d8b45d1/html5/thumbnails/27.jpg)
Presented by: