How do you see Financial Reform impacting the 2014 Market? I know it is a broad question....I am an Agent in Minneapolis MN.

Asked by Nancy Cameron, Bloomington, MN Sun Nov 17, 2013

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Joseph Metzl…, Mortgage Broker Or Lender, West St. paul, MN
Thu Dec 5, 2013
New QM (Qualified Mortgage) rules will shake the market as they initially come out in January 2014. But quickly lenders will adjust, and it should have little impact in the overall market - other than to make it more expensive, and make it take longer to get a mortgage loan. (Nice job Barney Frank, Chris Dodd, and the CFPB)

A bigger concern in the short term will be when the FED stops, or reduces their ongoing purchase of mortgage backed securities, which has been artificially keeping interest rates low.

As we progress it to early and then mid summer 2014 - one should expect the benchmark 30-year fixed to be in the mid 5% range. While historically that is an awesome interest rate, whenever we see rates move up, we tend to have a 6 - 9 month drop in purchase activity as buyers become disenchanted with the higher rates. After awhile, those potential buyers accept the reality, and new buyers getting quoted the 5% rates just accept it from the get go.
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Arne Johanss…, Agent, Minneapolis, MN
Fri Nov 29, 2013
I think they should increase FHA downpayment requirements. I just wrote an offer for a customer who only needed $1500 for the downpayment on a $126,000 loan. He is a great guy, but that is a lot of money to him and he doesn't really have that much besides that. I think too many buyers are entering the market again. And I know most realtors will be like, "what is this guy talking about, why does he want less sales".

I don't know. I think it is driving prices high again and that is making homes too expensive. There are so many houses that need to be remodeled, but as the prices keep going up, the costs to fix them go up too and make them less affordable for people.
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Steve Furlong, Mortgage Broker Or Lender, Bloomington, MN
Tue Nov 19, 2013
Our recent blog posts highlight some of the Qualified Mortgage (QM) rules and the potential impact on the housing market. Generally speaking, most of the legislation revolving residential real estate finance have made obtaining financing more difficult for most.

Read the blog here:
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Bill Boldenow, , Minneapolis, MN
Mon Nov 18, 2013
I think it will have a impact. Rising rates and lowering debt to income will have a impact on how many people qualify for homes. It may push some people out of the market. As always though we will adjust! I can help people with credit scores as low as 580. Let me know If I can be of any service!

Bill Boldenow
Purchase Manager / Loan Officer
NMLS# 31974
Cascade Mortgage
2801 Hennepin Ave S
Minneapolis, MN 55408

O: 612-252-3347
C: 612-387-4745
F: 866-365-5065


My business is built on referrals from people like you, so please feel free to pass on my name and number to anyone looking to buy or refinance a home. Thank you!
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