I've been in the lending business since 1986 and I've found out that things are always changing in this industry. Although guidelines sometimes change, we adapt and find new ways to help people buy homes. In 1980-1982, the interest rates were a staggering 18%+ yet buyers still purchased homes. In March 2009, the Governor abolished all types of "No income verification" loans to be written in the state of Pennsylvania. The latest change is the new QM changes in effect since January 10, 2014. This QM ( Qualified Mortgage)
change means all lenders must prove that anyone they are lending to must qualify for the mortgage. Certain protocol, verifications, and other steps must be followed in order to comply with this new law. For those of us who've always performed these steps there is not going to be any significant change in our day to day operations. More importantly, the buyers who now are buying will continue to be able to buy. Very few people will be affected by the new guidelines. The hilarious part is that there is a period of adjustment where the government will allow status quo with no changes. The deadline is the year 2021! This means that they can revamp the guidelines again or abolish them anytime within the next 7 years. We've been able to overcome high interest rates, major program changes, a current glut of foreclosures and short sales, and we will continue to prosper in the future.
Andy Williams NMLS 118317
President
Abacus Regional Mortgage
NMLS 113984
484-695-5972
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