The legislature in charge of the nontraditional mortgage guidance is dragging its feet. It is up to the voters to let the politicians know we want it passed and that we know they are slow in adopting it.
Please take the time to email, call, or fax Senator Michael Machado to let him know we want this adopted quickly.
I listened to the hearing, and Machado asked for a few panel members to get back to him with further information, giving them 30 days to do so. That puts us out to February 28.
Now I think that tighter underwriting guidelines will come from the lender/investor side first. That means by the time the Senate Finance Committee gets around to stopping the ponzi scheme of loose lending and finally pays attention to bank safety, the very loans they are trying to prevent will no longer even be available.
Whether Machado asked others for more time or not, the key would be to let them know that people are watching them and expecting them to take action.
NEW has sent out an email saying they will restrict all IO loans (except the 10 yr IO) in states that have the nontraditional mortgage guidance, so it is having an effect.
But people have to care enough to at least send an email and spread the word.
Yes, let’s have the state legislature that brought us electricity market deregulation (by unanimous vote, by the way) fix the problems with the housing market and mortgage lending criteria. If you think we have problems now, enlist our state lawmakers to fix it.
While we are at it, why don’t we ask the legislature to pass a law that all housing be priced at a fixed multiple of median salary. And to make things fair, they should also install the maximum wage at 2x the minimum wage, to level the playing field.
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I disagree. As painful as it may be sometimes, I believe in free markets.
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