Consumer watchdog strikes balance with mortgage rules

Comments (12)
beech wrote:

Yes, by all means let’s make it much harder for people to buy a house. bring on more business stifling, heavy regulation!

Jan 10, 2013 1:33am EST  --  Report as abuse

yes, beech and the reason these regulations were in place was because (especially here in America) businesses can not be trusted to do what’s right for business the only thing businesses care about is their bottom line, they don’t care about the environment, labor will replenish itself, people don’t mind working for nothing just so long as some entitled jerk can live the good life, businesses with special attention to the banking industry has proven time and time again these regulations need to be in place, businesses have had very loose regulation for what 10 or 12 years now, and look where America is, and corporate greed is a lot to blame….obviously reducing regulation is a complete failure, reduced regulation still gives us run away prices, and atrocious unemployment numbers because all businesses are capable of seeing is their bottom line cash flow…

Jan 10, 2013 4:58am EST  --  Report as abuse
PKFA wrote:

We need to be careful about these regulations. One of the social goals of government is that every citizen be able to own his or her home, whether they can afford it or not. This clearly conflicts with that. Better to simply designate home ownership a “right” (such as life, liberty, the pursuit of happiness, clean water, clean air and health care) and subsidize with it with increased taxes on the 1% (after all, it’s their investment dollars that fund mortgages anyway). I see the resurrection of “redlining” and discrimination suits looming.

Jan 10, 2013 9:24am EST  --  Report as abuse
jrj906202 wrote:

It took 5 years for govt to decide that it’s policies of encouraging(forcing) lenders to lend to poor people,was a bad idea?Now,get rid of this 3% FHA down payment,if you’re really serious.

Jan 10, 2013 12:00pm EST  --  Report as abuse
tmteague wrote:

I just finished a refinance, that only took about 4 months. I guess next time I can anticipate the process taking about a year, or never.

Jan 10, 2013 12:43pm EST  --  Report as abuse
cab197806 wrote:

If you look back you will find that most the abuses were committed by mortgage brokers rather than reps of the actual bank making the loans. Brokers would find a debtor process the applicatkion for the bank and take a fee for their services. They had zero skin in the game when the loan went bad. Brokers were everywhere 6 years ago but you hardly see them today…

Jan 10, 2013 1:05pm EST  --  Report as abuse
Sue01 wrote:

We are back to the basics of lending as I did it for twenty five years beginning l959….just the other day I heard a commercial that was for an FHA loan without verification of income…prime loan stuff to me!!

Jan 10, 2013 1:24pm EST  --  Report as abuse
Sue01 wrote:

Gapeterson1958….Pure Bull Sh##. Since I started working in l959, every single business was in business to make a profit while paying decent wages…back in the l960′s I got a yearly bonus of two weeks…the mortgages were made so people could pay the payments back without problems..then along comes Clinton and his minions, Barney Frank as one, and changed it so that FNMA ordered lenders to make loans for everybody regardless of income, work, ability to pay…welcome to the destruction of the business by government….I was there personally and watched its destruction!

Jan 10, 2013 1:28pm EST  --  Report as abuse

Excuse me PKFA, since when is Every citizen Entitled to Own a home??? Are we living in a communist or socialist country?

Sorry about that rant, but I do agree with you that it’s the government’s job to try to make it a more “level playing field that’s more equal”, so that people have a better chance to own a house if they want.

As Gaperterson1958 pointed out, businesses can’t be trusted with “ethics”. They would choose: money, over ethics without blinking, so laws need to be in place to keep them in check. It’s all to keep another massive housing bubble to happen again. I think these mortgage rules are a good thing, having seen what happened.

PKFA, another thing, did you know that mortgages are packaged and sold to wall street then sold to Freddie and Fannie, then eventually purchased by your and my 401k funds? (Some 401k funds hold mortgage backed securities). So when somebody who really couldn’t afford a house defaults and stops paying, he/she is not paying the money owed in the fund, and our 401k fund suffers. Yes, some individuals do buy MBS themselves, but a lot of them are simply owned by big pools of funds.

Jan 10, 2013 1:48pm EST  --  Report as abuse

Hi Sue,

We went from making: harder to get a mortgage, to Clinton era laws of making it is easier for everybody to get a loan. And then well, look what happened. So now we are simply going back to what it was before, that is, putting more checks in place. It sounds like these are good rules to have.

Jan 10, 2013 1:59pm EST  --  Report as abuse
MikeBarnett wrote:

The plan appears to be over a decade late and trillions of dollars short. It is uncertain if it will “solve” the problems, and it does not address the criminal misconduct of those who knowingly urged home buyers to take on too much risk for their income levels. This leaves the US banking industry in the hands of criminals who have proven track records of excessive greed.

Jan 10, 2013 2:01pm EST  --  Report as abuse
Sue01 wrote:

MikeBarnett….when I was in the loan business in the l960′s there was FHA, VA and conventional…25% of gross income for mortgage payments; 28-30% back end for “debts”…on the job for at least two years; excellent credit rating and everything was verified. Then, you were approved! As a matter of fact I remember a loan that was denied because it was a 2 bedroom home and the borrower had 5 kids. The persons who “knowingly” urged the borrowers to get sub prime were the lenders at the direction and orders of the President, Senators, House and FHA…to name just a few…that is what no one will admit to, it our own government leaders that ordered those loans to be made or no warehouse lines would be allowed!!! Excessive greed? You bet on the seller, buyer, escrow/lawyer, loan agent, title company…but the borrower was right there doing the best they could to get whatever they could….

Jan 11, 2013 12:29am EST  --  Report as abuse
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