MBA Urges Regulators To Avoid Invoking Suitability Standards

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Araceli Ferrera — Fri, 09 Mar 2007 13:00:00 GMT

I believe that borrowers are 100% responsible for their own choices in the financing selected. The industry (with its different financial options) should not be penalized for those who have gone beyond their means. Personally, I have tried educating people on fixed,conventional,bi-weekly and simple interest loans but people have shopped me around and opted for option arm programs. Most people know what they are getting into and now they want to play victims.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Leee J. DeMeo — Mon, 26 Feb 2007 13:00:00 GMT

If any of you Loan Officers out there who DON"T already think you have a Fiducuary Responibility to put your borrowers in a loan that is best suited for their financial condition and best interests (and some of you have posted comments here), you ARE the reason this Suitability Issue regulations are being considered.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Kandyb — Thu, 22 Feb 2007 13:00:00 GMT

This just gives borrowers someone else to blame for their actions. I don't know about you, but someone else cannot convince me to go into debt. Borrowers do understand what they are getting into, at the time, they just don't care. When they realize what greed has cost them, they start pointing the fingers. We just need a better option available to get "shady" originators out of the biz & protect the honest ones from "shady" borrowers that are not willing to accept responsibilty.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Kandyb — Thu, 22 Feb 2007 13:00:00 GMT

Suitablity standards can have its pros & cons. It will weed out all those "shady" originators that are hurting our biz & approving peeps that should have been denied. However, it won't stop borrowers from being greedy & unreasonable. As an originator, I have found that people want that "million" $ home at any cost. I make my $ by helping borrowers, I like to sleep at night. Bottomline: People will always want more than they can afford, to blame mortgage lenders for this is absolutely absurd.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Lisa — Sun, 18 Feb 2007 13:00:00 GMT

Borrowers have to take responsibility for themselves. I am soo tired of buyers saying "Well I just signed where I was told to do so...". Why would you sign something you didn't understand? I am tired of people using the system because they want more than they can afford, and/or lie to get it and scream foul when they can't make ends meet. Has anyone at the top of the "food chain" thought about the rate of defaults is increased because of HIGH gas prices and credit card pymnt increases?

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Jeff — Wed, 14 Feb 2007 13:00:00 GMT

Mike, I don't really think Reverse Mortgages belong in this conversation ... while I agree many people (including the forward mortgage loan officers/brokers/lenders) don't really understand the product or market, I don't think a suitability test is warranted for these applicants as they already are required to go through counseling - HUD approved, no less, if they choose the HECM and I advise to always go that route. If anything the people that sell them should go through a suitability test.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

connie — Wed, 14 Feb 2007 13:00:00 GMT

In my opinion not all mortgagees are as savy as so many people think they are. We still have people who are buying homes with only a high school education, at best. Many of us are still gullible enough to buy into the hype of shady lenders, hoping somehow that their lifetime investment will be secure enough to last long enough to get us to solid sole ownership. I feel that deregulation of the mortgage industry has lead the unscrupulous to act like "Snidley Whiplash" to "Sweet Nell"

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Mike — Tue, 13 Feb 2007 13:00:00 GMT

It is funny to me how people talk about how bad these "exotic loans" are. The fact is that these loans, Neg-Am and Interest Only, make up less than 20% of all mortgages and have the lowest percentage of delinquency and foreclosure compared to fixed rate loans. If someone can not understand what "Interest Only" means, and doesn't bother to find out before they sign, they should take a 30 year fixed rate with a higher payment. It's not rocket science. Maybe all borrowers should be tested at close.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Anonymous — Thu, 08 Feb 2007 13:00:00 GMT

I currently manage a mortgage company that has elected to not originate sub prime, option arms, and reverse mortgages due to the lack of full understanding of these products by most borrowers. Buying a home is an emotional process that can lead to poor decisions when the prospect of being told 'you don't qualify' happens after you have announced to family and friends of your purchase. It's time we take responsibility for our actions and best serve our customers!

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Audrey — Thu, 08 Feb 2007 13:00:00 GMT

WOW!!! 'Closed minded' is an understatement! I have been in the 'origination' side of things. LOL...cut throat!!! That's how they make their living. Knowing the processes of these procedures and how lenders think, you have some bad people playing 'GOD'. The processor and underwriter are going to decide your fate.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

real life — Wed, 07 Feb 2007 13:00:00 GMT

The article was informative but the comments were more educational. Sounds like half these people never had to bury a loved one or made a bad decision. Or maybe I really make so little money I live paycheck to paycheck but my kids are fed and taken care of. Making loans easy to understand in english not bank talk would be great.

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

Georgia Homeowner — Wed, 07 Feb 2007 13:00:00 GMT

Lindsey - I think you are thinking a little close-minded. I purchased a home using 100% financing about 2 years ago. If I had waited till I had saved up $40,000 to purchase the home I would still be years away, and my home has already appreciated that much, so to live in the same house I would now have to save an additional $8000. I have no trouble making my payments and I am paying less per month than it would cost me to rent. Why don't I deserve my home?

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

sy — Wed, 07 Feb 2007 13:00:00 GMT

People need to take responsibility for themselves. They need to understand that credit has to be repaid. They need to understand that they cannot afford the big house, the two new cars and a mountainload of credit cards. Instead of suitability for mortgage bankers, there should be suitability for borrowers. The borrowers are the ones who keep spending when they don't have the money and then send the keys back to the lender. Take responsibility, people!

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

AM — Tue, 06 Feb 2007 13:00:00 GMT

I don't understand how invoking suitability standards would require a rigid underwriting guidelines, as far as the loan origination process in concerned, the product is decided before the underwriting which only evaluates the suitability of borrower against that particular product.

Shouldn't it require more flexible underwriting guidelines to make sure that even after deciding on a product earlier, the borrower gets the product in his/her best financial interest?

RE:MBA Urges Regulators To Avoid Invoking Suitability Standards

CA renter — Tue, 06 Feb 2007 13:00:00 GMT

The MBA is only looking out for their clients' (mortgage originators) best interests. They've been getting people into suicide loans, and telling the borrowers they could "just refi" when the loans reset. Every time a borrower was FORCED to refi (because they couldn't afford the original loan), everyone in the mortgage chain made money off the dupes. The end effect will be a foreclosure "crisis" brought on by these mortgage slugs.