With new mortgage rules, like Ability-to-repay and Qualified Mortgage, being launched, little hope remains that the slump mortgage market is experiencing will recover anytime soon. The rules are already being termed as complicated, as they require technological capabilities beyond average to be able to qualify. This is raising doubts in the minds of majority of the industry participants, as if they can actually incorporate the changes appropriately in their operations. Moreover, they are finding it complicated to determine accountability for noncompliance.
The promising news of mortgage applications being up did last, but only a week till the introduction of these rules. According to Mortgage Bankers Association, purchase originations will expectedly reach $677 billion in 2014. It is lower than last year, which is considered to be a quite slow year. On top of all this, the market of refinance mortgage is being expected to go down this year by approximately 60 %.
The future is not looking too bright even after the mortgage review launched by DBRS. According to the report, low down in mortgage volumes will continue throughout the first half, with showing slight improvement in second half. The scenario is no different for services as well. Most of the time this year, the services might be busy dealing with lawsuits and fines as they try hard to incorporate and follow the new mortgage rules. With not much hope in sight for the scenario to improve in 2014, one can only wish that the 2015 DBRS might have some better news in store.