On May 8, 2013, NAR Immediate Past President Moe Veissi testified at a Consumer Financial Protection Bureau field hearing on the impact that growing student debt will have on the ability of consumers to access mortgage credit, particularly first time homebuyers. Mr. Veissi reiterated that rising debt and pending mortgage finance regulations will contribute to an already tight lending environment. The bottom line is:
- Americans burdened with growing monthly debt payments will have restricted access to mortgage credit under the QM rule.
- Consumers unable to save for a down payment due to growing debt burdens will be denied access to the most reasonable loan terms under the proposed QRM definition.
- Potential homebuyers may find that banks are unwilling to lend to those who are unable to save for a significant down payment due to substantial cost increases under the proposed Basel III bank capital standards.
Mr. Veissi also stated that NAR is gathering additional data and conducting research to properly assess the problem.
Read the full comments here: NAR Comments on Impact of Student Debt on Housing