Tuesday, November 12, 2013

New rules are coming


The rules will lower maximum debt to income ratios, reserve requirements, ability to repay, prepayment penalty and interest only loans the most. The exciting thing is there is a much stronger secondary market meaning more demand by so many more firms. The concern I have  is these new rules have to be implemented and can create issues with how the rules are applied by each Bank. Think of it like interpretation and layering of individual rules by some firms. We will all need to communicate more together to make this as smooth as possible.

Like any change in life will be a work in progress but if you know anyone who wants to refinance, buy and get an equity line I propose they move now before these rules take effect.

Thank you

 

Alan

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