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Tuesday, June 9, 2015

Survey: QM Rules Continue to Tighten Credit Availability

Eighty percent of bankers expect that the CFPB’s mortgage rules will continue to constrict mortgage credit, according to the results of ABA’s latest Real Estate Lending Survey. Of those 80%, nearly one-fifth characterized the impact as severe. ABA EVP Bob Davis said:

As expected, the ability-to-repay and QM rules have dampened the housing market recovery. Combine that with new mortgage disclosures, which are just around the corner, and we’ll continue to see a slowdown in what should be the ideal time to buy a home.

In more positive news, the survey found that the foreclosure rate dropped from 0.78% in 2013 to 0.57% in 2013, while the single-family home delinquency rate fell from 2.16% to 1.76%. The percentage of single family mortgage loans made to first time homebuyers increased in 2014 to 14% — its highest since the survey’s inception — from 13% in 2013. The 30-year fixed-rate mortgage dominated the housing market, remaining over the 50% mark for 2014.

A total of 182 banks responded to the survey, 77% from institutions with less than $1 billion in assets.

Read the survey results.

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