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Study: Tighter mortgage rules haven't hurt

WASHINGTON – Sept. 24, 2015 – Ability-to-repay and qualified mortgage standards that took effect last year are having little impact on credit access, according to the Federal Reserve. For instance, the report notes, the share of home loans to black and Hispanic borrowers rose in 2014 after falling for several years.
Additionally, there was little change in the number of times that lenders listed a debt-to-income ratio as a reason for a loan denial.
However, they study authors add one caveat: While the study looked at mortgage originations before and after the Dodd-Frank Act legislation went into effect, lenders knew it was coming. They say it’s possible that lenders tightened their origination rules even before Dodd-Frank in response to the 2008 financial crisis.
However, the Fed concedes that without the Dodd-Frank rules, the market could have evolved differently. The study simply compares the data before and after the change.
Source: MarketWatch (09/22/15) Goldstein, Steve
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Source: Florida Realtors Feed

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