Increase in Purchase Applications

According to the Mortgage Banker's Association's Weekly Mortgage Applications Survey, the week ending January 18, 2013 brought about a 7% increase in mortgage applications. This is being counted on a seasonally adjusted basis. Unadjusted statistics show that the number of mortgage applications being filed increased by 8% from the previous week. Refinancing also increased by 8% for the week. This shows that the economy is recovering well despite the recent expiration of the homebuyer tax credit. The interest rates are still low, which is a huge benefit to those looking to purchase a home in the coming months. If you are among those people, give Quest Loans a call. We'll help you get the application process going! 888-883-5252.

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Overview of Housing 2012

The housing market had a good 2012! We saw great improvements in housing construction, so much so that home building is once again aiding the economy. Housing starts jumped 21.1%. This increase coincides with the higher levels of builder confidence over the past few months. However, there was a pause in the rise of builder confidence in January which is most likely caused by the fiscal cliff debate and all of the huge, impending decisions that face the housing and mortgage industries in 2013. Despite the improvements for housing, there has not been a huge increase in employment for residential construction. Job openings for construction are elevated which shows a demand for construction workers and suggests future growth potential. On a positive note, home prices have jumped to their highest annual increase levels in over six years. All of the pending index statistics suggest that home prices will remain strong in 2013.

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Changes and New Mortgage Regulations 2013

Over the next six months, many decisions will be made regarding the future of the real estate finance industry. These rules will determine what kind of housing market we leave for future generations.  The Dodd-Frank rules are upon us and will be dramatically transforming the industry. The first of these new rules that were mandated under Dodd-Frank and the Consumer Financial Protection Bureau (CFPB) show that the housing market appears to be in a broad recovery. These new regulations will shape how mortgage lending operates.

Recently, the Qualified Mortgage (QM) rule was released by CFPB and it will bring about significant changes to homeownership. Since 90% of mortgages are currently going through GSE and FHA underwriting, the new rule will most likely not have much impact on the credit rules. However, lenders will have more confidence and certainty about lending right up to the edges of the intended QM credit box. This broad credit box should help to serve a larger number of qualified borrowers by allowing for 43% DTI.

Many regulations are being released today and there will continue to be more rules and regulations released this year. Many policies will address a range of issues that effect the housing market. These changes and regulations are necessary, however they can go one of two ways. If these rules are done right, we'll have a coordinated and balanced system that doesn't tighten credit and ensures that more qualified borrowers have access to affordable loans.  If the rules are done wrong, though, they'd make lending too restrictive. Credit rules would be even tighter which would have a huge impact on first-time homebuyers and both low-income and middle-income families. This market would be cutting out the consumer.

Clearly, a balanced housing policy is crucial. We cannot have a system that over-corrects and prevents qualified borrowers from purchasing a home. Distinct rules, policies, and regulations need to be set in place with forethought to the downstream effects of overlapping policies also in mind. Right now, the FHFA, Fannie Mae, and Freddie Mac are all willing to work together transparently so that these policies can be set in place fairly.

If you have questions or concerns about how this effects you and your mortgage situation, do not hesitate to call Quest Loans. We have experienced professionals that can help to answer all of your questions. 888-883-5252

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Benefit by Working with a Smaller Lender

Here at Quest Loans we pride ourselves on having the professional standards and expertise of a large bank while still giving you the friendly feeling of a smaller community bank--and now there's even more perks for stopping by our office or giving us a call!

Just last Thursday, a new mortgage rule has been introduced denying consumers a "qualified" mortgage if they have debt exceeding 43% of their income. However, the Consumer Financial Protection Bureau proposed that smaller creditors be given an exemption to that new standard thereby giving the smaller guys an advantage over the larger banks, especially when they operate with low and moderate income communities.

Now, some consumer advocates may claim that this new standard could shut out first-time home buyers or those with low income. While this may be the case for those who step through the doors of larger banks, the new exemption provides small lenders like Quest Loans a formidable piece of the mortgage market.

Not sure where you stand in relation to this new mortgage rule? Have questions on what other special programs or offers you may be eligible for? Give us a call at 888-883-5252 and let Quest Loans look at your specific mortgage needs and get you the very best deal out there!

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The Mortgage Relief Act Extended One Year!

We are happy to report some good news on the mortgage front! The Mortgage Forgiveness Debt Relief Act has been extended through December 31, 2013. Congress recently passed a bill called The American Taxpayer Relief Act of 2012 that extends dozens of tax cuts. What does this mean for you?

If you've found yourself drowning in mortgage debt, you still have a chance to do something about it. This Act allows homeowners to have their debt forgiven through a short sale or a loan modification without being taxed as income.

For a full list of all the tax extensions, visit this website.

If you are worried that your mortgage is becoming too burdensome, you can take other measures to relieve your household. Call Quest Loans for information on refinancing your current mortgage. The mortgage rates are low! 888-883-5252

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