There are some sweeping changes coming in 2014 to the mortgage industry. As a consumer, you need to be aware of these changes. They can significantly harm your ability to qualify for a loan. As a buyer or a seller this could affect the outcome of your escrow and ultimately cause a deal to fall apart.

 

The Qualified Mortgage (QM) rule was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. It was finalized by the Consumer Financial Protection Bureau (CFPB) in January 2013, and will take effect on January 10, 2014. This rule was designed to prevent some of the high risk lending practices that caused the housing market to crash.

Here are some of the most important points of this new regulation...