“Qualified Mortgage” — what does it mean?

Lately, you’ve probably been hearing a lot about the new “Qualified Mortgage (QM) Rule” that goes into effect January 2014. This QM rule lays out new underwriting standards that the majority of lenders will use to qualify prospective borrowers. The pieces that seem to be generating the most discussion and getting the most media attention are the “ability to repay” and the new points/fees test. In the video below local lender Shayla Gifford, from The Gifford Team at Guild Mortgage, breaks down the changes that are to go into effect, and essentially says “the rule is no big deal.”

Check out Shayla’s explanation of the QM rule’s new requirements…