Cathy McDaniel      |

Financing The American Dream

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All printed material is for educational purpose only and is not a substitution in legal, accounting or other professional services.

If you do decide to click on any of the education material links listed below, you are helping  support the many hours I gladly spend in researching and writing about products and services that benefit you.

our visit to my site today is very much appreciated. My  deepest desire is that you can find information that you feel is relevant to what you are looking for and in some way, I have added value to your life and the services that you provide in your real estate business model.  Thank you for the time you spend with me in education which is very much appreciated and supporting, preserving and protecting homeownership. 

For questions, ideas or information contribution to any book, please contact:  Email:

Cathy McDaniel

New 2015 Residential Mortgage Loan Limits
Click here to read:  "New 2017 FHA Loan Limits"
Click here to read:  "New 2017 Conventional Loam Limits"
Click here to read:  "New 2017 VA Loan Limits"
Click here to read:  "New 2017 USDA Loan Limits"
Click here to read:  "High Cost Mortgages"

Click here to read
"Closing Disclosure - Consumer Financial Protection Bureau" 

Click here to read "TILA-RESPA Integrated Disclosure Guide - Consumer"

Click here to read: Mortgages-What You Need to Know.pdf
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Click here to readMake The Most of Your Credit Score.pdf
333.0 KB

Click here to readFinancial Planning Home of Your Own.pdf
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Financing and Credit
To schedule a education course at your office or community, contact:

Click here for "Credit Education" - One-on-one counseling and credit restorationTina Oliver 480-586-7815

Order your Credit Report NOW!  FREE!

More About Credit Reports - Video

Building a Better Credit

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Welcome to Residential Financing 2015

he Changing Mortgage Lending Landscape 

The mortgage industry’s response to the announcement of the new rules has been mixed. No doubt about it.

A number of market, regulatory and legislative developments are working together to reinforce the importance of consumer protection and internal controls in the area of banking and mortgage products. Whether it is mortgage loans, consumer loans, credit cards or other credit products, Congress, state legislatures, federal and state banking authorities and state attorney generals are looking at the products - their terms, disclosures and uses - for compliance with existing consumer protection and other laws.

The Consumer Finance Protection Bureau issued new oversight rules to ensure prospective homebuyers have the ability to repay their mortgages and to make the whole process more transparent. They go into effect in January, 10, 2014.  Fannie Mae has updated their systems to comply.  See attached notice.

The “Ability-to-Pay”, is totally about the future of loan performance, the saleability of loans to investors and lender protection. Whether a lender adheres to a 43% DTI or they approve a loan with 55% DTI, at the end of the day, compliance, quality control and risk management is every lender’s concern.  Lenders do not want to be sued or have to buy a loan back because of default.

Just to recap, these rules set new, national standards to help make sure borrowers are treated fairly and have a better chance of getting a loan.

 The New Federal Rules

Staring next January, mortgage lenders must: 

  • Verify a borrower’s employment, income, assets, debt and credit history.   
  • Document what the monthly payments on the mortgage are and any other mortgages that exist on the property.
  • Evaluate the borrower’s ability to repay the loan by looking at his monthly debt-to-income ratio.
  • Evaluate the homebuyer’s ability to repay based on the entire mortgage, not just the introductory teaser rate.
  • Lenders will face financial penalties if they fail to exercise good faith in assessing home buyers’ ability to repay.  It is not a time to make mistakes and ask for forgiveness later. 

Ultimately, the final verdict on this rule will be made by the market. I believe the rule will effectively block the return of risky product features and inadequate documentation. If it also provides lenders the certainty needed to originate qualified mortgages broadly across the market to creditworthy borrowers, it will have been a success. However, if the result is a tightening of credit as lenders pull back from offering loans that would create greater risk of litigation, the CFPB may need to quickly revisit the rule to avoid harming the housing recovery.

The response from state policymakers has been mixed as well, with a sense of relief that at least the rules are out. Many states and lenders have hit the ‘pause’ button in our own consumer protection efforts in this arena, at least to some extent, while waiting to see if their investors will actually buy loans outside the Ability-to-Pay rules. 

It is too early to gauge the effect of this rule. It is my opinion, that lenders will stay “under the radar” from potential liability and they are preparing for multiple in-house and external audits in doing so.  Today, loan approval is not a “one-shoe-fits-all” approach.  The file will have to be well documented and convincing that the borrower has the ability to pay the entire mortgage. 

Don’t shoot the messenger. 

Cathy McDaniel

 NAR 2013 Realtors Conference and Expo - Click here to read

Quality Mortgage (QM) and Ability-to-Repay Rules 

FHA has issued new manual underwriting requirements. On December 11, 2013, HUD published in the Federal Register its final notice. Click here to read the new requirements

New FHA "Back to Work" Program - Click to read article: Purchasing after a Short Sale, Foreclosure, Bankruptcy

Click here for "Homeowner's Budget Form"

USDA Loan Update - The USDA Rural Development income eligibility limits for the Single Family Guaranteed Loan Program have officially changed effective February 12, 2014.

Click here:  The Guaranteed Underwriting System and the Income Eligibility Calculator

Income limits can also be viewed by click here:

 E-Book Reading

Click here to read "Know Before You Owe" 

Click here to read "HUD Qualified Mortgage

Click here to read: 2014 - Ensuring Strategies are in Line with the Times

Click here to view "Ability-to-Pay"

Click here for 2014 - New Servicing Requrements - CFPB 

Click here for "2014 Mortgage Servicing Rules  Fact Sheet"

Click here for FHA Financing 

Click here for Fannie Mae HomePath Program 

Click here for Freddie Mac

Click here for VA Home Loan Financing

Click here to view 2013 Dept. of Veterans Affairs Statistics at a Glance

Click here for Rural Development Loans

Click here for Underwriting Guidelines for Mortgage Products

Click here to visit DCA Georgia Dream Program

Click here to visit

Click here to visit:  FDIC - Federal Deposit Insurance Corporation

Click here to visit HUD Approved Housing Counseling

Click here to visit National Credit Union Association

Click here for "Reverse Mortgage" 

For Mortgage Questions and Answers Contact

Resources - Click on the topic to be directed to their website

Free Home Value Estimators    

Click hereMortgage News Update


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