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New Legislation Might Make Obtaining a Mortgage Easier for Some

New legislation signed into law last week might potentially make it easier for certain borrowers to qualify for a mortgage. The legislation eases the restrictions community banks faced after the Dodd-Frank Act of 2010 became law.

New legislation aims to ease the restrictions imposed by the Dodd-Frank Act of 2010.

The Dodd-Frank Act of 2010 imposed a multitude of restrictions on lending institutions after the financial crisis and various lenders have spoken out about how difficult it has been for some borrowers to obtain a mortgage, per the recent Seattle Times article. The new law aims to make the rules less restrictive for smaller community banks and credit unions, ones defined within the legislation as having “less than $10 billion in assets.”

The change will allow said banks to be able to offer their customers mortgages that do not comply with the so-called Qualified Mortgage rule. The rule states that one’s debt must not exceed 43% of one’s income. What makes it so restrictive is the criteria used to prove income, particularly for individuals such as independent contractors or small business owners, whose income might be inconsistent. The new law allows small banks and credit unions to lend to individuals without following the Qualified Mortgage rule, as long as such a mortgage is kept inhouse and not sold.

Click here to read the Seattle Times article in its entirety. Thinking about buying or selling a property and not sure, where to begin? We can help! Please contact the Stroupe Group at 206.910.5000 or at



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