8 responses so far ↓

• 1 Diane Cipa // Dec 18, 2007 at 5:59 pm

  Paul: Thanks for the link. I’ve been trying to ge the full text of this bill for two days.

• 2 Trace // Dec 18, 2007 at 6:05 pm

  I saw this but there hasn’t been much talk at all… it’s hard to gauge the threat, but as I’ve said before in relation to 3915, in this environment anything can get through if you get caught asleep, so there’s no reason to get comfortable around any of these bills, regardless of how small they may seem or how lacking in momentum they may appear to be…..

• 3 Bryant Keefe // Dec 18, 2007 at 8:22 pm

  So this means that they will also ban “margins” used by banks to increase profits on loans? At least a broker discloses their “hidden” profits. Banks get to hide the over charges. I wonder what lobby is behind these “reforms”?

• 4 Paul // Dec 19, 2007 at 5:27 am

  Round Two!

• 5 Vikas Sharma // Dec 19, 2007 at 9:10 am

  Clearly, this is an effort to put all Mortgage Brokers out of mortgage business as all the state and federal banks don’t have to abide by all these new regulations proposed by the legislation. Banks don’t even have to disclose YSP but mortgage brokers have to. If that’s not unfair, what would you call that ? I’m starting to believe that our legislation is run by the big banks and not by common people.
  Most of the mortgage professionals, all these years, have been doing a great job, providing great products to the consumers and making lending business more competitive and advantageous to the consumers by providing a variety of loan programs which banks can not. How many of us have dealt with the banks for our mortgage needs ? How long it took you to get your loan closed when you went to the bank ? I’m sure you were not satisfied when you went to the bank and that is true most of the times for one reason or another. When you talk of mortgage professionals, first of all, they make their income from commissions. I’m sure we all have seen a difference in service level when people are on commissions and when people are on salaries. SO not only mortgage professionals are focussed on getting the things done faster but also mortgage professionals work hard to do the best for their clients so not only they get repeat business from those clients but also get referrals from those happy clients.
  All these years banks have been trying their best to put mortgage brokers out of business becuase of mortgage brokers’ bigger market share of mortgage business. Do you know what %age mortgage brokers contribute to the home lending? It’s 60%. YES, my friends, more than 60% of the business, whether it’s a refi or a home purchase, gets originated by the mortgage brokers.
  Let me clairfy that all these new laws are not going to benefit any consumer but hurt in fact not only the mortgage professionals but all the other small businesses associated with the mortgage brokers such as title companies, appraisal companies, etc. and ultimately hurting the consumers by leaving them with no choices for their mortgage needs but going to a local bank and then waiting for 6-8 weeks or more in addition to whatever rates and closing costs banks want to offer them for their closings as consumers are not going to have any other option if the mortgage brokers are not going to be there ! All our legislators are going to accomplish after passing those legislations, if the get those passed, is more bureucracy and the least amount of benefit to the consumers.
  Respectfully, I understand and I’m not opposed to regulating the mortgage business but I don’t understand why only the mortgage brokers and not all the other banks ? Why they are making mortgage brokers the target ? It would be very unfair to say or indicate that the mortgage brokers have done bad business. Not only mortgage professionals give competition to the banks but ultimately it helps consumer to get a mortgage product at a competitive pricing and faster with more options !
  Let’s not forget that COMPETITION is always the best policy for benefiting and protecting a consumer/homeowner’s rights. Let’s maintain the competition. Providing great services and more options to a consumer/homeowner should be the objective and nothing else !

• 6 Howard N. Schoem // Dec 19, 2007 at 9:27 am

  Just read this Bloomberg article! I feel down when I read one of the designers of the derivatives market use the work, “transparency.”

  TRANSPARENCY!?!

  Why the mortgage originator is getting all the attention beats the $#@! outta me!

• 7 Mickey Ridings JD // Dec 20, 2007 at 6:47 pm

  My concern is for the feds to determine underwriting guidelines for other people’s money. The elimination of programs that could effect 30% to 40% of the present home owners and new home buyers. This tightening of credit, means less money in the market place for the consumer to spend on homes, with a drop in demand, present home owners stand to have a massive devaluation of their home values. This will cause financial losses to the consumer. Especially those approaching retirement and contemplating the use of a reverse mortgage. This will not only have a negative effect on the mortgage community but a direct reduction in realtors business.

  I do not want the feds telling me I can not refinance my home for any reason.

  Also, to pre-empt state foreclosure laws and to change fed foreclosure laws that will cause an increase in lender losses that could drive up mortgage insurance cost to all home owners. I cannot wait to see the depository bankers face (thinking they are exempt) when their prime customers home values drop. Remember this NO ONE, NO One in this country will escape this devasation. Just like the S & L’s after the tax law change in 1986 this time they to may go by the way side.

  If the federal government is going to reform mortgage laws they should preempt state law, make licensing, education requirements and mortgage laws uniform in all states in-order to reduce costs and to allow consumers in one state the same ability to obtain financing in a different state. Further, if a mortgage company is licensed in their home state they should be able to obtain a license in another state without going through the same federal procedures 49 other times. This Act does not do this.

  The Act should not be allowed to kill the mortgage brokerage industry that brought about creative products to the consumers that needed them at the time to buy a home in the first place that they otherwise could not have qualified for under Fannie Mae or Freddie Mac. If the concern is over what mortgage brokers make, then put reasonable limitations on what they can make so they can continue to operate their businesses and pay their employees. This Act does not do that.

  Anyway, I guess my biggest problem is I have lived long enough to see federal law, whether or not well intended, destroy families and businesses. Abuse is abuse whether from brokers, lenders, banks, or the government.

  Also, if passed I would expect an mortgage industry along with home owners filling a class action law suit against the government for abuse of power and violation of constitutional rights. Especially the 5th amendment regarding depriving persons of property. Mick

• 8 Joe M // Apr 1, 2008 at 4:03 pm

  Another issue that I hope your organization is paying attention to in S. 2452:
  Home Ownership Preservation and Protection Act of 2007 concerns Appraisers with the requirement for a 1% bond of the aggregate amount of the prior years appraisers (by myself I managed to appraise $200,000,000) which the Appraisal Institute estimate will cost between $10,000 and $40,000 per year, on top of all the other expenses we incur before we earn one dollar. Another issue is a 10% threshold to trigger a payout from that bond if it is determined that the appraisal was too high. Of course, who determines what is true market value is not mentioned and I think it goes without saying that 3 different Appraisers will have 3 different opinions of value and they can vary easily by 20%. Needless to say is that Attorneys would see this as easy money and the few Appraisers left would spend their time defending every appraisal in a court room, as the court would have the right to “knock” down the mortgage amount to the “right” value. I also believe that these few Appraiser left would have to charge no less than $1,000 for a single family appraisal in order to actually earn some money to survive the year.

  Can you even imagine the cost to appraise a multi-million dollar property (of which we have many here on Long Island)? An Appraiser would have to purchase a bond or insurance policy just to cover that one appraisal. Also consider that every home appraised would lose significant values in order to be sure we never appraise “too high.” I personally believe that this bill, if it became law, would have the unintended consequence of forcing every Appraiser out of the business and destroying the mortgage and real estate industries as well as the economy of the nation until it could be repealed…

  It may sound dire and extreme but do you believe any Loan Officer or Broker would continue in the business if each was required to carry bonds that were so expensive?

  Also, remember that with the agreement between FNMA/Freddie Mac and the NY State Attorney General, bank employed Appraisers cannot appraise a property on a loan that the bank is doing. This same agreement steals all my clients from me by preventing them from communicating with me any longer.

  The over reaction of our legislators will lead to economic disaster and I hope your organization will work to prevent it. It is not just the mortgage industry or brokers / loan officers that will suffer, it is everyone involved in real estate.

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