Selling Reno And Sparks Real Estate Blog


The New Mortgage Laws for 2014 ~ Are You Familiar With The Changes?



Looking for a house

Do your plans for 2014 include buying a new home? If you are thinking of financing a new home this year you have probably already heard or read about the new federal regulations that recently took affect & changed the rules that apply to mortgage lending.

The new rules are aimed to take a "back to basics" approach to mortgage lending and lower the risk of defaults and foreclosures among borrowers  Federal regulators say these new rules will make it more difficult for some people to get a mortgage but will mostly work to the consumers benefit. Basically if you have good credit and an ability to make a monthly mortgage payment you should be able to qualify for a home loan.

If you are a current homeowner or considering a mortgage during the next year, I recommend you visit the Consumer Financial Protection Bureau or your lender for additional details and information.

Below is a quick look at some of the new rules that went into affect on January 10, 2014:
Computer keyboard concept

The Ability-To-Repay Rule ~ This rule requires lenders to make sure borrowers can actually afford and make loan payments throughout the life of the loan. Lenders will be looking at the borrowers debt-to-income ratio which will determine how much one can afford to pay each month.

Weighing income, assets, savings & debt to determine affordability are all considered. All basic things that will protect home buyers ability to repay what they borrow.

The Qualified Mortgage ~ A new class of mortgage (A.K.A. The QM). This is a mortgage that you are assumed to be able to repay for many years rather than a short period of time. The Qualified Mortgage meets new guidelines and borrowers who obtain them are presumed to meet the ability-to-repay requirements. The borrowers debt-to-income ratio  cannot exceed 43% (including the mortgage). QM's cannot include risky features such as interest only loans, terms that are longer than 30 years & up front fees cannot be more than 3% the mortgage balance. Basically the borrower is qualified to get a loan and will be able to repay this loan.

Things for mortgage borrowers to keep in mind in 2014:

Custumers paying at the hotel

Document your finances ~ Underwriters are going to be extra diligent at looking at borrowers income and expenses in 2014. Keep good records of your bank statements, tax returns, assets, extra income you may be earning. Be ready to show and explain all bank deposits and banking activity.

Lock Your Interest Rate ~ Interest rates are expected to rise in 2014 so keep a close on the what they are doing. Lock a rate as soon as your are comfortable with a rate.

Borrower Rights ~ Mortgage borrowers will get many new rights as consumers this year as the new mortgage rules go into affect . If you run into issues with your mortgage servicer in 2014 or fall behind on your payments, make sure you are aware of your rights and put them to use. With the new 2014 rules lenders are now required to address borrowers problems within 45 days or explain to you in writing why the problem cannot be fixed.  Be sure to put your complaint in writing!!!

Clean Up Your Credit ~ It's nearly impossible to get a mortgage without decent credit these days. That will continue to be the case in 2014. If you are planning to get a mortgage, monitor your credit history and score until your loan closes. The best mortgage rates usually go to borrowers with credit scores of 720 or higher. You may still get a mortgage with a score of 680, but lower scores will mean higher rates or higher closing costs. So watch your credit card spending and pay those each month.

New Mortgage Laws On January 10, 2014 ~ What You Need To Know

The New Mortgage Laws for 2014 ~ Are You Familiar With The Changes?

****This blog was originally posted @ MyRenoHomeSearch written by Terrie Leighton 01/2014

Your Home. My Priority. Since 2003

Certified Distressed Property Expert (CDPE)
Certified Default Resolution Specialist (CDRS)
Short Sales & Foreclosure Resource ~ Certified (SFR)
NAR's Green Designation ~ Certified Green
Certifed Negotiation Expert (CNE)
Property Manager

Ferrari-Lund Real Estate

 Cell ~ 775.846.5424

Email ~


Facebook   LinkedInTwitter

Comment balloon 6 commentsTerrie Leighton • January 28 2014 01:29PM
The New Mortgage Laws for 2014 ~ Are You Familiar With The Changes?
Do your plans for 2014 include buying a new home? If you are thinking of financing a new home this year you have probably already heard or read about the new federal regulations that recently took affect & changed the… more
121 Plantation Drive Carson City Now Pending
Westside Charm in Carson City Overview Maps Photos Features &… more
Photo Friday ~ Cows Grazing on Pumkins
Driving to work this morning I finally decided to stop to take this picture before it was too late. These lucky cows live at Ferrari-Farms in Reno, NV and get to enjoy feasting on pumpkins each fall. This scene always brings a smile to my face. &… more
How Long Does Information Remain On A Credit Report?
How many of you have ever wondered how long it takes to clear or clean up your credit report I know it is a concern of most of the people I talk with on a daily basis. George Souto wrote the following post to help answer and explain to… more
FHA's 1 Year Waiting Period After Short Sale Bankruptcy or Foreclosure
Wow this news seems to be to good to be true for those home owners who had a foreclosure or a short sale due to a lost of income, lose of employment that were beyond their control can now have the opportunity to purchase another home after just one… more
Art & Wine Festival July 2013 ~ Sparks Arts in Bloom!
Sparks Arts in Bloom Festival 2013 July 20, 2013Downtown Sparks ~ Victorian Avenue11:00 a. m. to 7:00 p. m. Spend the afternoon this Saturday with local and regional artists at the 11th Annual Sparks Arts in Bloom Festival The City of… more
Want To Reduce Clutter In The Kitchen? Start At The Top
I am now soid on keeping the area over your kitchen cabinets clear of clutter, especially if you are a home owner getting ready to sell. Packing up and clearing your clutter in the kitchen is a great place to start when getting ready to list your… more
1300 Copper Leaf, Reno NV 89506 Reno Real Estate Listing
New Construction Single Family Overview Maps Photos Features $158, 000 Single Family Home Main Features 3 Bedrooms2 BathroomsInterior: 1, 461 sqftLot: 00 sqft Location &… more
July 4th 2013 Fireworks ~ Sparks, Nevada
Celebrate 4th of July at Victorian Square & The Sparks Marina! The City of Sparks is ready to help you celebrate the 4th with a fantastic fireworks show and lots of fun activities for the entire family to enjoy. If you missed last year’s… more
NH Home Makeovers - Tips For Decorating Your Bookcase Shelves
~ Sharon Tara New Hampshire Home Stager ~ Below is a terrific post full of before and after photos and tips on how to decorate those builtin book cases and shelves. Thank you Sharon for letting me re-blog and share with my readers. NH… more