Friday, January 11, 2013

10 Questions on the New Mortgage Rules

10 Questions on the New Mortgage Rules

Regulators issued new mortgage rules yesterday aimed at preventing the kinds of abuses and missteps that contributed to the housing crisis. There's a nice summary in yesterday's Wall Street Journal, including this exchange:
Will certain loans become harder to get? Yes. Many exotic mortgages that proliferated during the subprime heyday have disappeared; they are now less likely to come back. Lenders also may be more reluctant to make other loans that have been popular in more expensive housing markets and among affluent borrowers, such as interest-only mortgages. 
Whether such loans will be securitized may depend on how ratings agencies interpret the potential costs of the new rules.
No specific mention of refinancing, which allowed many homeowners to use their homes as cash machines -- taking out money to remodel, among other things -- during the housing build-up.

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Also in today's d5R Update:

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