Mortgage lending changes 2021

[Alan Dunlap]

Hello BP community!

Any lenders out there have any opinions on the lending changes coming in 2021? The DTI requirements are being replaced, using other factors to qualify for mortgage:

https://www.barrons.com/articles/a-recent-change-in-lending-rules-could-make-getting-a-qualified-mortgage-easier-or-cheaper-for-some-51608389707

https://www.reuters.com/article/us-usa-cfpb-mortgagelending/u-s-consumer-watchdog-finalizes-new-mortgage-rules-idUSKBN28K38I

https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-issues-two-final-rules-promote-access-responsible-affordable-mortgage-credit/

I wonder if this will be helpful for investors, or just allows more people to qualify for mortgages.

Happy holidays !

[Eric Johnson]

This is a very interesting take & curious to see where it goes. This is essentially taking an aggregate analysis of a borrowers APR & comparing the threshold based on a model of a "on time paying customer." This means, no single tradeline can throw your chance of getting qualified out the window (because of surpassing a specific DTI threshold).

I will need to let this ruminate a bit a more.