How can the new regulations affect existing loans? How could you change the terms of a loan after the loan is made?
BTW, these are not new mortgage products. Just today, someone was telling me that in the late 80’s, ARMs were prevalent. What is different this time, I think, is the looser underwriting guidelines which allow layering of risk. ARM plus no money down plus low FICO plus stated income.
This guy also told me that the number of Poway students applying for payment plans for their $350/yr bus passes, has gone up 4x in the last year. These parents are complaining about their high mortgages and that they can’t come up with the money for the bus pass. More kids live in 3-generation homes, i.e. grandparents, parents, kids, to make ends meet. The money problem is particularly bad in the western section of our school district, west of I-15.