| Ara, you nailed it. More regulation, removal of product from the market and futher barriers to entry are the one sure-fire way to ensure this crisis persists. |
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| Above Posted By:
BWS
| Thu, 10 Jan 2008 06:46:50 EST |
| Lenders should require more documentation & 6 months piti reserves for all properties owned for Stated Income loans. However when obtaining a SI loan you should know if you can cover the debt you are obtaining. Most SI loans require more money up front. ( YOUR MONEY ) If the housing market has problems. Be prepaired with at least 24 months piti reserved in a line of credit or cash. As the rental market may not save you. Allways prepare 2 years ahead when its Real Estate. |
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| Above Posted By:
Douglas M. Thomson Sr.
| Fri, 28 Dec 2007 00:34:12 EST |
| The fees of a mortgage loan shouldn't change from start to finish anyway. That is why the loan officer has RESPA forms signed. These forms disclose the fees and broker yield spread to the borrower. The government needs to get rid of mortgage brokers. The only thing they are good for is helping the borrower go BROKE 'R! |
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| Above Posted By:
Rob
| Thu, 27 Dec 2007 18:08:18 EST |
| Doing away with stated income programs will harm the self employed who utilize the ability to write off their expenses. this will eliminate lending to anyone who isn't a W2 employee. I condone getting rid of the unscrupulous practitioners who are using stated income products to help qualify people who can't afford the payment. Real professionals realize if they are harming their client by getting them into more than they can afford, they are doing a disservice and this is the result. |
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| Above Posted By:
Cookie
| Thu, 27 Dec 2007 12:30:35 EST |
| When will the public realize the consequence of what our govt really did? They avoided raising taxes, but eliminated most of the financing options for self-employed people who "avoid" taxes by showing less income. Just because you're self-employed doesn't mean you can't show an income...it's just that most people use every tax write-off possible, thereby lowering their adj net income, which is used for mtgs....causing people to write off less-pay more tax-to get loans. |
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| Above Posted By:
Susie
| Thu, 27 Dec 2007 07:43:08 EST |
| Most of the negative comments so far all complain about 1 of the 4 bullet points - ignoring the 3 other bullet points which clearly will help clean up some of the current mess. Rather than just screaming about what "I will lose" - we'd accomplish more by first noting the good ideas.
And Richard's note is well taken - rather than just limiting our income - the lenders should be required to pay what was previously agreed to - neither more nor less. The rest should go to the borrowers. |
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| Above Posted By:
Anonymous
| Sat, 22 Dec 2007 05:07:12 EST |
| What irks me is the fact that Credit card rates are someplace in the 30% range and the fed is trying to reg the mortgage market? Why not take a look a lending from a holistic approach, mortgages, credit cards consumer loan and sba loans. For instance I have customers that have credit card payments as high as their mortgage payment. So am I greedy to refi them, save them 500 – 600 per month in payment relief to help them out?? |
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| Above Posted By:
George
| Thu, 20 Dec 2007 21:32:41 EST |
| Well said Richard Izaguirre Sr. - I personally will not be able to refinance my home or purchase a new home with the stated income program. I have never been late on my mortgage(s) in over 27 years nor have I been late on any other extension of credit. I am a self employed small business owner who takes pride in all that I have been able to accomplish. Am I going to lose it all now? I pray that "the powers that be" come to their senses and use a more appropriate plan of action. |
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| Above Posted By:
Lynne
| Thu, 20 Dec 2007 16:31:45 EST |
| I write off as much as I can, like all of the other smart people in this country, and I don't show a huge profit on my tax return, therefore I can't qualify for a traditional mortgage. So much for trying to be independant! I feel bad for people who are loosing their homes but many of thoses people knew the terms and knew that they could not really afford them in the first place. Why punish the rest of us? |
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| Above Posted By:
Megan
| Wed, 19 Dec 2007 11:10:54 EST |
| I am self employed and the only way that I can purchase a home is through stated income programs. If they do away with these types of loans they will really harm working people like me who can afford the homes that they purchase, who pay all of there bills on time, and who pay their taxes! |
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| Above Posted By:
Megan
| Wed, 19 Dec 2007 11:09:56 EST |
| I bet that not a single person who is blogging on this site realizes that these people do actually know what they are doing. When constructing proposals such as this, the government is actually polling organizations such as Wells Fargo, CitiGroup, Countrywide, etc. If you are going to google something, try looking up HOPE NOW. You can also check out this website. |
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| Above Posted By:
Anonymous
| Tue, 18 Dec 2007 16:28:53 EST |
| I think that all I have read regarding opposition to this proposition spouts from greedy individuals. Everyone's stated focus is on the "borrowers" but everything that I am reading here is focusing on how this will affect me, and how will this keep me from making my dollar. This is the reason that this legislation is needed. The reason that the market is in its current state is because there wasn't regulation on the mortgage industry. Maybe actually try thinking about the borrower. |
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| Above Posted By:
Anonymous
| Tue, 18 Dec 2007 16:22:12 EST |
| Fortunately there'll be a period of public comment before the next vote by the BoG as Ara said (below), just wait 'til the sh*t hits the fan for foreclosures and short sales even for borrowers w/ excellent credit history/experience when stated loans no longer exist. If these rules were installed as-is, I'd suggest everyone sell now, absorb immediate losses, and move out of the country for a few years while the R.E. market crashes down around the chumps who don't understand the process. |
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| Above Posted By:
FS
| Tue, 18 Dec 2007 13:31:57 EST |
| Re: Reverse Mortgages Reduce/Limit (High) fees charged by mortgage companies. Extremely high now.
Lenders are taking way too much from seniors equity-upfront
Retirement: This is when most seniors need every dime they
can come up with just to meet the high cost of living. |
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| Above Posted By:
George Schuitt
| Tue, 18 Dec 2007 12:21:40 EST |
| They have NO idea! LOL it's called FRUAD!
Google Mortgage servicing fraud and Predatory lending. |
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| Above Posted By:
HurtByAmeriquest
| Tue, 18 Dec 2007 11:48:38 EST |
| Unreal, these idiots don't realize and i agree with the ARA stated deals are the backbone of the business without them the market will crash because refi's will be a thing of the past. Bottom line. |
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| Above Posted By:
GREG
| Tue, 18 Dec 2007 11:08:47 EST |
| I feel that the proposed regulation: "The Fed may also propose barring lenders from paying a commission or fee to mortgage brokers that is higher than the amount the borrower had agreed to in advance that the broker would receive". It is not fair. In many cases, a broker quotes a fee based on current market conditions. If market changes later, the fees may need to be adjusted in order to satisfy the borrower. The proposed ruling could negatively affect both the borrower and broker. |
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| Above Posted By:
Richard Izaguirre Sr.
| Tue, 18 Dec 2007 10:34:29 EST |
| It is very interesting that people who do not have any knowledge of how the Mortgage business works are in a rush to change the lending guidelines.....If we remove stated income loans then you have no idea of the amount of additional loans that will fall into foreclosure due to the inability to refinance borrower's even with perfect credit |
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| Above Posted By:
Ara
| Tue, 18 Dec 2007 10:17:06 EST |
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