riseandshredcovid vaccineIndustry News

CFPB New Rules; Forbes Real Estate; Economic Rebound 💸

By December 13, 2020 No Comments

CFPB issues new rules to open up QM lending

The CFPB has issued two rules related to QM loans and not everyone is a fan. The first final rule, the General QM Final Rule, replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43 percent with a limit based on the loan’s pricing. In the second final rule, the Bureau creates a new category for QMs, Seasoned QMs.

The CFPB is hoping the new rules will support a smooth and orderly transition away from the so-called QM Patch and maintain access to responsible, affordable mortgage credit upon its expiration.

The biggest change is to DTI which adopts a price-based approach to replace the specific DTI limit for General QM loans. The CFPB now believes that a loan’s price is a strong indicator of a consumer’s ability to repay and is a more holistic and flexible measure of a consumer’s ability to repay than DTI alone.

Additionally, conditioning QM status on a specific DTI limit could impair access to responsible, affordable credit. The idea here is to help support lower-income borrowers in getting a new mortgage.

CFPB Director Kathy Kraninger said: “Allowing lenders the flexibility to respond to changes in the economy while still ensuring a consumer has the ability to repay will help many consumers achieve their dream of owning a home.”

The National Consumer Law Center took to Twitter to criticize the new rules. “By removing protections and creating a new exception to the rule, the new “qualified mortgage” (QM) rules will protect lenders from legal liability, increase foreclosures, and lead to instability in the mortgage market,” adding “CFPB’s new rules will dramatically change the mortgage market to the detriment of homeowners, especially lower-income Black families who have historically been the target of predatory loans.”

🤣 MEME of the day by Maria Gomes 🤣

Have a funny meme? Email your favorite meme here for a chance to be featured in our next Rise&Shred.

Forbes launches luxury real estate venture

OK, we all know Forbes as a media brand, right? Well, we can say for certain the new CFPB rules won’t be much of a concern to what they’re getting up to.

The new venture? Forbes is launching Forbes Global Properties, a new curated consumer marketplace that connects discerning buyers directly to s

ome of the world's finest homes and the agents that represent them.

Established as an invitation-only consortium of leading real estate firms, the start-up will capitalize on Forbes' engaged

audience of more than 140 million

monthly global visitors to connect high-net-worth potential homebuyers and sellers with luxury properties. The website currently showcases thousands of

high-value homes available for sale around the world, including homes priced above USD$160 million. More than 200 homes are priced above USD$10 million.

“The Forbes brand is recognized around the world as the benchmark of success,” said Mike Federle, CEO ofForbes in a statement. “Every month, we engage more than 140 million people deeply interested in luxury, travel and real estate. Forbes Global Properties is a natural extension of our brand and will become the definitive global marketplace for exclusive, high-end properties.”


🔥 Market Update 🔥 

With Movement Mortgage

Goldman Sach: Vaccine is key to quicker recovery

The live events industry in North America lost an estimated $30 billion in 2020, according to a new report by Pollstar. Nearly $10 billion was lost at the box office, says the report, despite predictions early in the year that revenue would reach over $12 billion in 2020. As efforts to bailout this struggling industry, and others, languish in Congress, there is one hope that can help: A COVID-19 vaccine.

Two experts at Goldman Sachs say the economic outlook is getting brighter into the new year. And it’s all due to updates on COVID-19 vaccine progress. Just last week, an F.D.A. Advisory Panel gave the green light to the Pfizer Vaccine.

The blessing of these experts means that the agency will likely OK the vaccine’s use, paving the way for health care workers to begin getting shots THIS week. (NYT metered paywall.) And here’s a dandy distribution model of how Pfizer plans to get the vaccine to you (Also NYT metered paywall).

Dominic Wilson of Goldman Sachs Research reflected on how the recent good news on vaccine development has played out in the markets. “Having a safe and highly effective vaccine,” Wilson says, “allows economic activity to come back more quickly than it otherwise would, particularly in areas where face-to-face activity is important.”

Referring to the recent developments of multiple vaccines showing great promise, Wilson reasserted a positive outlook in this video. “Relative to where I think people were expecting things to be, this is a substantial piece of good news. I think it confirms the more optimistic view we’ve taken on that issue and makes us feel more confident that a more optimistic growth forecast is on track.”

“We had over $100 billion of equity inflows in November,” said Earl Hunt of Goldman Sachs Global Markets Division in this video link. “It’s the most on record. So, clearly, people are optimistic.”

That bullish positioning isn’t limited to equities, he says, but is also playing out in credit markets. Looking forward into 2021, institutional investor clients are focused on a few key themes including a more offensive strategy, with a rotation out of safe-haven assets, Hunt says. “There's vaccine visibility, and there's an expectation that we'll have stimulus as well as central bank policy that's supportive of the markets.”

Spread the Rise&Shred ❤️ and share with a friend

Shred Media

Author Shred Media

More posts by Shred Media

Leave a Reply