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Regulators to Craft New Mortgage Lending Standards by January

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Mortgage Professional America | 09 Nov 2012, 10:56 AM Agree 0
As most people in the mortgage lending industry well know, the Dodd-Frank and the Consumer Protection Act have made it even more difficult for consumers to obtain mortgages by trying to “protect” them.
  • David Rider (@davidrider) | | 09 Nov 2012, 07:03 PM Agree 0
    Very well written point of view. As a traditional lender I agree ours are two different worlds for two different reasons. Hopefully the CFPB will be able to tell the differences as well.
  • Anthony Fierro | | 10 Nov 2012, 05:30 AM Agree 0
    Interesting article. Now what do we do about it?
  • Sam Mannino | | 10 Nov 2012, 07:01 AM Agree 0
    I couldn't agree more, being in this business since since 1982 I have now seen everything! A small business owner doesn't have a chance today! Licensing and bonding fees are through the roof and look out for the auditors that will be spreading your files looking for any reason to fine you or even put you behind bars..I have been in the commercial sector since 2008 because of this war on residential mortgage bankers and brokers. Now commercial lenders and brokers that require a personal guarantee from the business owner to secure a business mortgage or equipment lease will now be under the same spotlight...What's next??
  • CoreyCurwickDutton | | 12 Nov 2012, 08:31 AM Agree 0
    Sam I like the way you described it as a "war on residential mortgage bankers". As a hard money lender, we've now had to become licensed just like a conventional mortgage broker. And we are lending our own money!!!

    I hate it when people come to us in distress like in the example I gave. There's nothing we can do to help them. Their bank won't give them a mortgage, and now we, as a hard money lender, cannot make them a mortgage either in order to help them out of their predicament. There are some ugly things happening out there in this wake of this crisis. These new regulations intend to help consumers. Call the people I used in the example and ask them if they think Dodd Frank has made their lives better! I hope everything will come out in the wash as they say....
  • Traci Ramirez | | 12 Nov 2012, 09:38 AM Agree 0
    Absolutely agree with the comments. Dodd-Frank Act and CFBP are crushing the mortgage industry, especially small offices. I just attended my CE and they instructed stacked the new regulations on his desk and was able to rest his arm on it at shoulder height!! Have you seen the proposed new SIDS? The APR was difficult enough for clients to understand and now you want to give them a TIP calculation. Talk about scarring a home buyer to death - and what will that number look like as rates rise AND you include all closing costs into the APR? Making purchase clients wait 3 days to close after Closing form approval will only cause more headaches and needless delays. And if the GSAs come out of conservatorship and those mortgages fall into the QRM status-I'll never do another convenational mortgage. I simply cannot afford to carry a 5% risk retention. All our mortgages are fully documented for ability to repay - we cannot control the future of the client's employment, marriage status, etc. And no matter what the CFPB keeps putting out there, they have no leveled the playing field!! They are no helping homebuyers!!
  • William Matz | | 13 Nov 2012, 11:28 AM Agree 0
    Good article. Had a hard time understanding how someone who never missed a payment lost his house after sale of the mortgage. Of course, none of the "reforms" address the fundamental problem of whether a proposed mortgage is approapriate for the borrower's financial plan. Stated differently, the reforms do not address, let alone ensure, that borrowers will be made aware of other mortgage programs that might be a better "fit". Getting great pricing on the wrong mortgage program is not a great outcome. Until this systemic weakness is fixed, many borrowers will still be placed in suboptimum mortgage programs and/or rates.
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