Skip to main content

CoreLogic: QRM Rule Will Great Impact on the Purchase Market

NationalMortgageProfessional.com
Feb 12, 2013

CoreLogic has released its February MarketPulse report, where Chief Economist Mark Fleming discusses the current state of the economy and housing markets, as well as challenges facing the mortgage market in 2013. The potential influence of the Qualified Mortgage (QM) and Qualified Residential Mortgage (QRM) rules is analyzed. "The impact of the QM rule on the purchase originations market is very similar to the total market that includes refinance loans," said the February CoreLogic MarketPulse report. "In the purchase market, 53 percent of the loans would meet the eligibility requirements of the QM's rule safe harbor. However, the forthcoming QRM rule will have a proportionally larger negative impact on the purchase market than on the overall market because of its downpayment requirement." Additional key findings in the February MarketPulse report include: ►Consumer spending levels will likely be impacted by the reduction in disposable income due to the expiration of the payroll tax holiday. ►Purchase demand for homes may be negatively impacted by uncertainty created by ongoing debt ceiling debates. ►Strong mortgage origination volumes in 2012 were dominated by refinance transactions; in 2013 and 2014 refinance transactions as a share of the total mortgage origination market is expected to decrease. ►Only about half of the total mortgage originations today would qualify for QM coverage if there was no GSE exemption. ►The states most impacted by QM are Nevada and Hawaii. "The combined impact of QM and QRM is that only 25 percent of purchase originations would meet the eligibility requirements of the QM rule's safe harbor," said the report. "Therefore, the QRM rule will be very important for the purchase market and longer-term mortgage production because, despite tighter lending standards in certain dimensions such as credit scores and DTI, the average LTVs for purchase loans has increased and the purchase market has remained heavily leveraged today."
Published
Feb 12, 2013
400 Mortgage Loan Originators Caught Trying To Skip School

400 mortgage loan originators nationwide deceptively claimed to have completed their annual continuing education as required by state and federal law.

Industry News
Jan 19, 2022
Infamous Better.com CEO Is Back And Employees Are Upset

After a month-long hiatus or “break” as Garg likes to call it, the CEO is back at the helm of the company.

Industry News
Jan 19, 2022
Capacity Closes $38M In Series C Funding, Surpasses $62M In Total Capital Raised

AI-powered automation platform, Capacity, announced an additional $27 million in Series C funding, closing out the round at more than $38 million.

Tech
Jan 19, 2022
Millennials Are Still Powering The Housing Market

First American Financial Corporation's Potential Home Sales Model for Dec. 2021 revealed that millennial demand is propelling the housing market, thanks to low rates and increased geographic flexibility.

Analysis and Data
Jan 19, 2022
Open Mortgage Adds A Chief Revenue Officer

Scott Harkless will spearhead all wholesale and retail sales functions for the national multi-channel mortgage lender.

Industry News
Jan 19, 2022
Home Builder Confidence Dips Due To Inflation And Supply Chain Concerns

Home builder confidence in the market for newly built, single-family homes fell by one point to 83 in January 2022, according to the National Association of Home Builders and Wells Fargo's Housing Market Index report.

Construction
Jan 18, 2022