Mortgage groups blast parts of Senate housing bill

Shared by Larry on Thu Jun 19, 2008 4:14 am
The mortgage industry is urging the lawmakers to drop pieces of the Housing Bill. It is actually too strict and restrictive on the lenders. Six trade groups told the lawmakers that the bill will impose very strict standers on the lenders to determine what the best loan program is for each borrower. According to the lenders this standers will reduce the number and types of product for the consumers. They also criticize a portion of the bill that creates nation wide licensing system for the mortgage brokers and loan officers. Source: http://www.forbes.com/feeds/ap/2008/06/17/ap5126560.html

Community Members Opinion

sara

Joined: 05 Jul 2006

Posts: 1015
Location: New Brunswick, New Jersey

193.60 Dollars($)

Posted: Fri Jun 20, 2008 5:27 am Post subject: RE: bill expected to impose restrictions for lenders

It is said that the Bill is passed will impose strict standards on lenders thereby requiring them to determine which loan is best for the borrower. The standards proposed by the Bill are likely to expose lenders to lawsuits and compel them to minimize the number and type of loan products available to consumers.

Jessica
Jessica

Joined: 08 Jun 2004

Community Mentor
Posts: 664
Location: OHIO

114.19 Dollars($)

Posted: Fri Jun 20, 2008 5:47 am Post subject: White House threatens to veto Housing Bill

Yes Sara, it's true that lenders are thinking that the Bill would restrict their practices in terms of the type of products they offer. In fact, 6 trade groups have written a letter to lawmakers requesting them to drop certain parts of the Bill. The Bill, which was passed last month by the banking panel and is expected to receive votes from the senate this week, changes the limit on the loan amount purchased by Fannie Mae and Freddie Mac o $625,000 up from their traditional limit of $417,000. However, currently the limit has been raised to $729,750 on account of the Economic Stimulus. The Bill is also expected to help homeowners refinance their loans and provide cash to local governments to buy up foreclosed properties. But the White House has threatened to veto the Bill in case the Senate approves it. This is so because the White House feels that using public money to buy up foreclosed homes would be similar to helping lender who had earlier made bad loans as a result of which there have been a lot of crisis in the mortgage market. Regards, Jessica _________________ Home buying made simple with Community booklet

Niicss
Niicss

Joined: 03 Oct 2005

Posts: 1018

151.63 Dollars($)

Posted: Fri Jun 20, 2008 6:18 am Post subject:

Hello. I feel this bill will certainly be strict for the lenders but it only for the betterment of the economy. There are few lenders who has given out loans at a higher interest rates to the borrowers who don't even qualify for the loans. So I feel this is a good step. _________________ Good is the Enemy of Great.

chrisburns

Joined: 13 Nov 2007

Posts: 106
Location: Florida

27.90 Dollars($)

Posted: Fri Jun 20, 2008 6:37 am Post subject:

What I want to know is if I need to be federally licensed then why can't I as a federaly licensed mortgage broker do loans in all 50 states? The whole purpose of state licensing is to allow each state which has it's own specific mortgage and loan laws to police their own licensing. If I need to get a federal license then I demand that I be able to originate in any state in the US! lenders of course will push back which is exactly why this won't pass in it's current forms. Big Banks will ensure this doesn't go through. _________________ Chris Burns Five Stars Mortgage, LLC Office: 800-871-2636 ext. 200 Cell: 407-456-3697 Residential & Commercial Loans Mortgage Forums

brian1
brian1

Joined: 14 Jun 2008

Community Experts
Posts: 269
Location: Northern California

47.53 Dollars($)

Posted: Sat Jun 21, 2008 12:20 am Post subject:

I would love to see this National Licensing go through. I would like to see all bank loan originators be licensed as well. So many horror stories of incompotent people in the business on both sides. Getting everyone to be educated to the same minimum level will do a lot for the industry. There will still be bad seeds but they tend to come out of the closet eventually. I do agree the banks will be the ones to fight this one. Brian _________________ Licensed Broker http://www.aimwithfocus.com Secure Application www.applyonlinesecure.com 887-783-6287


Page 1 of 1

Highlights

• Mortgage Planner
• Simple Budgeting Tool

Community Rewards
• Five simple ways to earn money with the Mortgage Community.

Explore the lender near you