Mortgage Lenders See Tighter Credit Under New U.S. Rules - Bloomberg News Headline
Regulators are preparing to release the language of two rules taking effect in January to set standards for non-abusive lending and require banks to hold a slice of risky mortgages on their books. In addition, U.S. banking overseers must also complete new capital standards mandated in the international Basel III accords next year.
The housing rules, coming almost simultaneously, may overlap or conflict, creating what National Association of Realtors President Maurice “Moe” Veissi called a “perfect storm” of regulation.
“There’s this intersection of policies that are absolutely not being considered by this massive array of institutions, all involved in deciding the future of homeownership and rental opportunity,” David Stevens, president of the Mortgage Bankers Association, said in an Oct. 22 speech at the association’s annual conference in Chicago.One might also ask, even if these regs are good public policy, would it be smarter to hold off on their implementation until the business and housing climate improves?
For consumers considering a new home mortgage or home refinance, this might be one more reason act quickly, especially if their credit score, down payment, and income place them on the cusp of eligibility.