Some interesting fallout from the new Colorado Mortgage Originating guidelines as part of House Bill 1322, which requires lenders to make reasonable inquiries as to the borrowers current and future income, debts, and any other information that may affect their ability to afford the mortgage. Many Banks have indicated that as of July 1, 2007 they will no longer offer any stated income or no doc loans because of Senate Bill 07-216, which formally adopted rules governing the "non-traditional mortgages by banking institutions". Violations of this legislation constitute a deceptive trade practice under the "Colorado Consumer Protection Act". The lenders that are rumored to be affected include Wells Fargo, Bank of America, and Merrill Lynch to name a few.
On the interest rate front, we are seeing a slight improvement in rates, and it is likely that we have seen the high mortgage rates for the year. No point low fee loans are still at 6.75%.