QM is a set of changes coming from CFPB to the mortgage industry in January 2014. Benchmark Mortgage (Ark-La-Tex Financial Services, LLC) is prepared for these government changes. We want you to ensurer your lending partner is ready and that your buyers will have no issues closing after these changes go into effect. http://benchmark.us http://whoisbenchmark.com

1. Big Changes are coming!
[QM]
...or are they?

2. You’ve probably heard
all the buzz about
the “CFPB” making lots
of changes in 2014.
…

3. If you are like most people,
you heard the word CHANGE
and decided that it was
probably not a good thing...

4. But before we get into
what's to come in 2014,
lets take a step back...

5. Leading up to
the mortgage crisis,
mortgages were
extremely easy to obtain.

6. Since 2009, creditors were
required to follow rules
that prohibited making higher
priced mortgage loans
without assessing
the consumer’s ability to
repay the loans.

7. In 2010, congress adopted
a similar (but NOT identical)
requirement for virtually
all closed-end residential
mortgage loans.

8. While all of this was going
on, Congress also established
a presumption of compliance
with the ability to repay
requirements for a certain
category of mortgages,
called “qualified mortgages”
(QM)

9. You may remember the final
ability-to-repay and qualified
mortgage rule being issued in
January of 2013.
But, this rule was amended
in May and July and
will go into effect
in January of 2014.

10. The ruling might cost you
your next closing,
but we doubt it,
because you work
with Benchmark

11. Lets discuss what
this really means
for all of us in 2014

12. The final rule contains 8 very
important underwriting elements to
confirm a borrowers ability to repay
1. Current or reasonable expected income and assets
2. Current employment status
3. Taking into account monthly payment on said debt
4. Take into account revolving debt
5. Take into account mortgage related obligations
6. Take into account child support and alimony
7. Take into account residual income
8. Credit history

13. Does this
Sound familiar?

14. It should if you have been
working with Benchmark!

15. From debt-to-income
calculations and
verifications of employment,
these 8 items have already
been a part of our
processes and procedures
and help us uphold
our core values.

16. Debt-to-Income Ratio
43% with ability to go higher
on FHA, VA, USDA
and DU approval (45%)

17. Interest Only

18. Interest Only

19. Balloon Payments

20. Balloon Payments

21. Negative
Amortization

22. Negative
Amortization

23. Along with “Ability to Repay”,
a [QM] loan must also not
exceed 3% of the total loan
amount in points and fees.

24. While these changes may be
new for the industry in 2014,
it won’t be for Benchmark!

25. Our team of experts
will continue to
set the industry standard,
and guide you
along the way!

26. Thank you so much
For trusting your clients
With a benchmark
mortgage professional

27. Presented by: