Reg Z – Impact in Boulder?
by Osman Parvez
On January 10, the new Qualified Mortgage Rule went into effect. Created under Dodd-Frank, the rule tightened lending standards in exchange for increasing lender protection from liability. In theory, this should allow easier securitizations – important as the Fed kills off its quantitative easing programs.
On the ground here in Boulder, overall sales volume dropped 13.7% since the rule went into effect (chart) but sales of $1MM+ properties has continued at the same pace as last year.
From a Loan Engine Keeps Humming (WSJ):
Many in the mortgage industry worried that the “qualified mortgage rule” would curb access to loans, including jumbos. But the regulation has created little stir, with lenders picking up the slack as others pull away from riskier types of loans.
It can be tough to read the tea leaves and analyze market conditions at this time of year. Although sales volume has dropped, the biggest underlying factor is the unrelenting inventory shortage.
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Reg Z – Impact in Boulder?
by Osman Parvez
On January 10, the new Qualified Mortgage Rule went into effect. Created under Dodd-Frank, the rule tightened lending standards in exchange for increasing lender protection from liability. In theory, this should allow easier securitizations – important as the Fed kills off its quantitative easing programs.
On the ground here in Boulder, overall sales volume dropped 13.7% since the rule went into effect (chart) but sales of $1MM+ properties has continued at the same pace as last year.
From a Loan Engine Keeps Humming (WSJ):
Many in the mortgage industry worried that the “qualified mortgage rule” would curb access to loans, including jumbos. But the regulation has created little stir, with lenders picking up the slack as others pull away from riskier types of loans.
It can be tough to read the tea leaves and analyze market conditions at this time of year. Although sales volume has dropped, the biggest underlying factor is the unrelenting inventory shortage.
—
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More about the author
Osman Parvez
Owner & Broker at House Einstein as well as primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has appeared in the Wall Street Journal and Daily Camera.
Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. Learn more about Osman.
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