Morning Minute: HUD issues final rule on “qualified mortgage” definition

Beginning Jan. 10, 2014, mortgages backed by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) will have a few more qualifying requirements.

Earlier this week HUD released its final rules on what constitutes a “qualified mortgage” including:

  • Require periodic payments without risky features;
  • Have terms not to exceed 30 years;
  • Limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans (except for Title I, Title II Manufactured Housing, Section 184,Section 184A loans and others as detailed below); and
  • Be insured or guaranteed by FHA or HUD.

Read HUD’s release for more details.

In other headlines:

Fannie, Freddie suspend evictions for holidays – Chicago Tribune

Mortgage bankers not amused with HUD’s lower high-cost loan limit – HousingWire

This entry was posted in Commercial Real Estate, Housing Market by Stephanie Sievers. Bookmark the permalink.

About Stephanie Sievers

Stephanie Sievers is Senior Editor for the Illinois Association of REALTORS®. She serves as Senior Editor for IAR publications including the Illinois REALTOR® magazine and all other IAR publications. She is responsible for developing content for the Illinois REALTOR® Weekly Connection e-newsletter, coordinates the IAR Twitter account content at ILREALTOR and plans and develops content for videos. She assists in developing and writing content for the IAR blog. She also is involved in researching and drafting news releases and coordinates the news media distribution database and newsclips reports for the Association. She also assists in IAR spokesperson training seminars and is involved in development of association briefing materials on issues. She assists with the housing statistics program and reports.