New Mortgage Rules Mean Tighter Requirements For CA Home Loan Borrowers

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Blue Loan Services comments on the new rules and gives some advice for mortgage seekers.

Blue Loan Services

Blue Loan Services

Blue Loan Services is a full service mortgage company that has been helping residents of California to find the best loan products and home loan rates for many years. The company, headed by the father and son team Robert and Brandon Blue, has been dedicated to serving its customers with honesty, integrity and competence. The Blue Loan Services team of mortgage professionals operates with the goal to provide home loans to its clients while providing them with the lowest interest rates and closing costs possible. The company also does its best to inform borrowers of any new developments which could affect their loan options, mortgage rate or ability to find affordable housing. Now the company comments on the new mortgage rules and how they will affect those who are looking for home loans.

A report from CNN Money, posted on December 6th, explains, “During the housing bubble, some banks issued loans without even checking applicants' income or assets. Under the new rules, lenders must carefully determine that borrowers have the ability to repay their loans. That means, for example, that the "low-documentation" and "exploding" adjustable-rate mortgages that were common before the financial crisis will no longer be allowed and that lenders will generally require that total debt payments of borrowers not exceed 43% of their income. Lenders must carefully examine and double check pay statements, bank records, tax returns and other paperwork provided by borrowers.”

Blue Loan Services explains that these new changes are due to go into effect beginning January 10. While the basic idea behind the changes is good – which is making sure that borrowers do not take on loans that they can not afford – there will be many negatives side effects. First of all, many smaller banks and lenders may not be able to comply with the new rules, effectively eliminating them from issuing home loans in the future. This means fewer options for mortgage borrowers. Secondly, and probably most importantly for mortgage borrowers right now, getting qualified for a mortgage is going to be more complex. Lenders are going to look at everything in order to ensure that the borrower will not default on their loan.

Because of this, there is going to be more paperwork involved in proving a borrower can afford a loan. Blue Loan Services can help California borrowers by offering free consultation and working hand in hand with the borrower to gather all the necessary paperwork and process it in a timely manner. The loan company is known for its fast, reliable and courteous service, and can assist borrowers in finding home loans that fit their situations and budgets.

For more information on how Blue Loan Services can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.

CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #938365

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