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  • Guaranteed Rate featured in Orange County Register

    Guaranteed Rate vice presidents Joe Soto and John Stehle were recently quoted in The Orange County Register. Soto and Stehle discussed the Qualified Mortgage rule, one of the Consumer Financial Protection Bureau’s new rules set to take effect on Jan. 10, 2013.  Both noted how these new rules will affect both the borrower and lender during the mortgage process:

    “If the loan is originated as a (Qualified Mortgage) loan and then is later found to not be … the lender can be exposed to a possible lawsuit or repurchase of the loan, both of which are very costly,” said Joe Soto, vice president of mortgage lending for Guaranteed Rate in Los Alamitos, Calif. “What we have done and what most lenders will likely do is try to keep everything the same … to make sure there is no second-guessing.

     “At the end of the day, if there is more risk for the lender, then there will be more pressure on the borrower to prove the ability to repay,” he said…

     …If the limits are lowered, “Fewer will qualify for the home they would be able to qualify for today,” said John Stehle, vice president of mortgage lending for Guaranteed Rate’s Costa Mesa, Calif. branch.

    “Borrowers that no longer qualify for conforming will have to move to high-balance (loans), and borrowers that no longer qualify for high-balance will now have to go jumbo,” he said. “The rates will be higher, and the qualifying tougher, with each higher-limit tier.”

    To read the full article, please go to the OC Register here. (NOTE: subscription required).

    Nov 25 2013