Home buyers face new, stricter mortgage rules

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(KPLR) – The stringent new mortgage rules which the federal government put into effect on January 10 are creating havoc for banks and potential borrowers.

In the first month if the new regulations, it's estimated 10-15 percent of borrowers who would have been given loans last year are now being shut out.

Chris Purcell, Senior VP of mortgages at First National Bank of St. Louis talked with Elliot Weiler about the rules, their implementation and where lenders will go from here.


  • Andy Ward

    This gentlemen fails to mention that all loans sold to Fannie Mae, Freddie Mac, FHA, USDA and the VA are not capped at 43% debt to income ratio at this time. There are also MANY lenders doing “make sense” loans outside of the Qualified Mortgage rules. Lenders had almost 2 1/2 years to get ready for this date, so if any of them were still scrambling to get the documentation and process changes ready for the January rollout, it says something about how they conduct business.

  • Andy Ward

    To be clear, I am not criticizing this guy or FNB. They have a good mortgage operation as far as I know. I am just tired of hearing this warning that mortgages are somehow less available when it has not been proven to be true for most borrowers so far if you have the right lender. Lending has always been risk based. If your scenario does not fit the perfect profile, you are going to paying a little higher rate. It has always been this way. Interest only loans, asset based income loans and jumbo loans with debt to income ratios are 43% are all still readily available of you look to the right lender. That’s all I am saying.

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