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Why QM is the acronym Realtors should now be concerned about (Agent Genius)

August 18, 2011  |  by John Heithaus

Our friends at Agent Genius have written an excellent article on the changes afoot in the residential mortgage market and the potential effects on the business. For those new to this subject, QRM stands for ‘Qualified Residential Mortgage’ –  a controversial concept created on The Hill to require a 20% down payment on all future home mortgage loans. NAR is actively engaged in this situation and the “jury is still out”, but we think it’s valuable for MRIS customers to be well educated on the topic and to make sure your voice is heard. The article appears here. Another well written article appeared in Slate several months ago which sounded the alarm for the industry. Interestingly, Sen. Johnny Isakson (R-GA) is a former real estate broker and he’s deeply engaged in this process. Stay tuned for more; we just wanted to keep you posted on this issue.

What are your thoughts about how this can effect the Baltimore/DC metro area markets? We would be very interested in your feedback on this important topic!



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6 responses to “Why QM is the acronym Realtors should now be concerned about (Agent Genius)”

  1. DC_MDRealEstate says:

    I think many more people in the business of Real Estate will loose work. It will cause more harm overall than good.

  2. P Gilley says:

    With an already lanquishing market, where one day you are busy and the next no buyers at all, I think any uptick in the amount of downpayment required to purchase a home will take almost all first time buyers out of the market. As we all know (or should know), if you take out one segment of homebuyer, the other segments soon fall. I don't know when the folks in Washington are going to realize that the housing market is the economy driver of this country. It should be very clear by now. I have been in real estate sales for 39 years and have been through many up and downs, but this is the most protracted down in my career. I sell in a rural area but a growing area of Maryland and we should be seeing lots of buyers taking advantage of great prices and low mortgage rates, but no many are confident about their employment.

  3. Vivian Feen says:

    Very sad that there are some ridiculous suggestions floating around to help the mortgage industry. What are they thinking? Perhaps if they look at the stats that show homebuying soared once they opened up the 5-15% down payment to allow more buyers who just don't have 20% down…are very willing to pay the PMI for the privilege…and allows them to have the money they need for closing costs! I will be in touch with those congressional powers-that-be who came up with this most unbelievable "answer" to housing issues. OMG!

  4. Teddy Goodson says:

    Elected officials at the national level are completely dominated by the Big Money of Wall Street and global corporations, and the economic Darwinism these powers prefer, so do not expect any populist or pragmatic solutions from them that recognize the basic truth: until housing is restored, the economy will languish. What is required are several things: resolve the foreclosure overhang by making investors eat some of the losses by cramming down mortgages and lowering interest rates on those mortgages to current market (thus keeping many in their homes); put a transfer tax on certain Wall Street transactions to stop speculation and gambling, forcing Big Banks to start making loans with that cash (to small business and to mortgages); when the big banks bring on the next crash (as they will unless the gambling with derivatives is halted), break up the too-big-to-fail; set up a real jobs program to put people back to work (directly by the government, like the WPA and the CCC) and thus prime the pump to create the consumer demand necessary for businesses to start re-hiring and factories to start producing

  5. Mike Carnahan says:

    You might as well close my market if this happens. Very few people could afford to put down 20%.

  6. With part of my business being based in the Prince George's County market, FHA is the dominate loan product used, and often it is coupled with down payment assistance. If we turned off all lending north of an 80% LTV, I think you would see a drop in home ownership to levels not seen since the early 1950's.

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