QM Loans Going Away?
I find it so odd that the average DTI is only approaching 40%? I would say 80% of all conforming conventional purchase loans I see have DTI’s over 40% and most pushing 45% and/or 50%.
Even more crazy is that the number of people who apply for a mortgage loan with DTI’s at 60%-80% and think they can afford that.
Getting rid of the QM Patch is supposed to let more private label investors into the secondary market. Freddie and Fannie have an unfair advantage right now having ability to buy Non QM. This gives us a much higher market share because private label has to meet QM. We should welcome private label so that the market share is more evenly distributed.
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