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ARE YOU WORKING WITH THE RIGHT LENDER? WHAT'S CHANGING AND WHEN? B EGINNING JAN. 10, 2014, some new rules went into effect, which will provide homeowners and consum- ers shopping for a home mortgage with new rights and greater protection. These rules require lenders to document a borrower's ability to repay the loan and follow other guidelines to protect consumers. These new rules were issued by the Consumer Financial Protection Bureau (CFPB), which was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). What Does This Mean for You? Simply, the rules say that lenders have to make a reasonable, good-faith effort to determine that a borrower has the ability to repay a mortgage by verifying and documenting at least eight specific criteria, including income, assets, credit history, other debt obligations and employment status. We also realize that many of our customers have specialized needs, and there may be times when it makes sense to apply for a nonqualified mortgage. Our bank will work hard to accommodate all of our customers' needs while upholding the highest-quality lending standards. Now, more than ever, it's important to work with a bank you know and trust. The eight financial criteria that must be considered are: + Current/reasonable expected income + Current employment status + Monthly mortgage payment + Monthly payment on simultaneous loan + Monthly payment for mortgage-related obligations + Current debt obligations, alimony or child support + Monthly debt-to-income ratio and/or residual income + Credit history Tips When Shopping for a New Home Loan + Know before you owe. You are a great source when determining the amount you are comfortable paying for your mortgage. + Understand your value. Review your appraisal or valuation before you close and understand how the appraiser arrived at the estimated value. + Get reliable help. Seek assistance from experts you know and trust, and only do business with reputable entities, such as your local bank. + Be an educated consumer. Shop around, compare your options and ask questions — lots of them! Mark Drew is a Vice President, Residential Lending Production Manager for Amegy Private Banking Mortgage in San Antonio. He partners with other professionals as the mortgage specialist on Amegy's Healthcare Services Banking team, collaborating to provide physicians with personalized solutions and comprehensive service. The healthcare team specializes in meeting and anticipating the needs of doctors, corporate executives, professionals, entrepreneurs, business owners, wealthy individuals and families who expect and deserve excellence and seek personalized relationship banking. For more information, please contact Drew at 210-343-4441, email mark.drew@amegymortgage.com or visit amegyhealthcare.com. ■ +++++++++++++++ + +++ + +++ +++++++++++++++ BANKING ❯ Mortgage Rules Are Changing By Mark Drew 1 0 | San Antonio MD NEWS ■ M D N E W S . CO M