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Industry group ACTUALLY WANTS loan limits lowered

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Mortgage Professional America | 14 Oct 2013, 06:00 AM Agree 0
So it looks like there’s at least one trade group out there that thinks Ed DeMarco’s proposal to reduce maximum mortgage limits for Fannie Mae and Freddie Mac is a good idea
  • Christie C. | | 14 Oct 2013, 09:20 AM Agree 0
    He is obviously NOT in a high cost area.
  • Bill in Florida | | 14 Oct 2013, 10:02 AM Agree 0
    Ok, let me see. So next month we're looking at 97% LTV's going away on conventionals, the max conv. debt ratio will be reduced to 43% soon, they'd like to drop or seriously amend the mortgage interest deduction rules, DC will be capping us at 3% all in, and on top of that let's reduce the conforming mortgage size when it's hard enough to get a good jumbo wholesale lender to offer competitive pricing or guidelines making a larger pool of what would be considered non-conforming mortgages if they get their way even more expensive for the consumer. So tie both hands and feet behind our back with all the newest and greatest regulation made to stifle not expand a vibrant economy, let's pile it on and soon we'll all be safe because no one will go to the trouble...come on DC, is that the best you can do? Don't you want to mortgage the consumers first born too?
  • James Wojtaszek | | 14 Oct 2013, 04:23 PM Agree 0
    I honestly believe that the CFPB and FHFA is causing problems in the lending arena. You have the CFPB that is the highest paid Government Agency telling us how we should curtail mortgage charges only if your a Broker. That does not apply to Banks and Correspondent Lending. And reducing the mortgage amount to $400,000 is just going to increase the borrower rate & therefore payment. We already disclose everything and give our customers credit towards their closing cost which would be eliminated with this 3% rule due to the fact it apply's to small mortgage amounts. If the customer qualifies for a mortgage grant him the mortgage that he wants! We have gone to the extreme and we are making this a renters market so nobody can qualify to finance or refinance due to the debt ratio cannot exceed 43%. What happens to FHA? This is the mortgage to help out first time buyers who are charged a high monthly mortgage insurance as well as a high upfront mortgage insurance. That's how we take care of our FHA customers just charge them more. It sounds like a subprime mortgage but when the Government does it, it's acceptable!
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