Bay Area

[buyinghouse]

   Of course it will. We are seeing home owners being beaten by foreigner investors and cash in hand buyers. If they can't compete while the old rules were in effect, the new ones will stop them in their tracks. Good or bad, it was expected.

  http://www.mercurynews.com/business/ci_22351458/bay-area-feel-impact-new-mortgage-lending-rules?sour...

[ATechGuy]

I think the 43% rule has been used by major banks for quite a period of time already. So what is new? Just to make it official?

In any case, I think this rule is good for a healthy housing market.

[kelpdiver]

the classic standards were 28/38 (home,all debts), and it was typical in markets like our's to allow the use of the full 38, and then it became 43 due to prices.  If 38 had been selected, that could present a problem, but 43 seems more than appropriate as a cap.

[Michelle1x]

but wasn't that 28/38 only fannie and freddie, once?  This 43% seems to apply to all mortgages.

I bought houses about 10 years ago with 40% down and no ratios were checked whatsoever.  I don't remember what kind of loan that was.

[buyinghouse]

  If you guys see it, I think this will kill some of the "online predators". You know, those who you never talk but give you a loan. Also, it will erase the mistake of the so called MERS mess. For what I hear, from that date, everything in the past is the past, erase and start counting again until somebody finds a way to break the rules.

  Also, I think that these rules will mean scrutiny at all level. No more loan officers erasing data without the consent of the borrower on the package they sold. Some jail maybe is in line, I hope. Until now, I have yet to see a realtor, a LO or a broker going to jail big time. Just the occasional slap on the hand thingy.