New Govt Regulation: HIGHER PRICED MORTGAGE LOANS (HPML) !!!

[HLS]

I wish I could tell you that this is a joke,, I just saw this email tonight for the first time,, and have no idea who came up with this..

It could be the aides of Barney Frank, Chris Dodd, Chuck Schumer and Maxine Waters. The 4 of them combined couldn’t come up with something as stupid as this if their life depended on it..

There was another regulation that went into effect on July 30th, again to “protect” consumers called MDIA.. It is a costly program that has complicated many loans already and will not fix anything..

My eyes are glazed too. I’ll figure it out before Oct 1st.

[HLS]

AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…

[HLS]

AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…

[HLS]

AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…

[HLS]

AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…

[HLS]

AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…

[patientrenter]

[quote=HLS]….
Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem……[/quote]

You know, HLS, that doing something like requiring a minimum down payment of 20% on owner occupied homes, and 30% otherwise, is not being considered as a fix for our financial problems precisely because it would… fix them.

Everything is being done to keep home prices high. Measures to clamp down on foolish lending are implemented only if they leave enough wiggle room for home prices to stay high. So proposals like tinkering with disclosures for consumer protection are now very popular, because everyone knows they will be ineffective. Changing loan applications will have zero impact. The fact that during the bubble everyone was lying on loan applications, and no one was checking, and no one was even reading the loan agreements they were signing, is now conveniently ignored.

We need to get rid of down payments of less than some reasonable number, like 20%, for once and for all. Otherwise the madness and economic damage will continue for many more years, and we’re just wasting our time and letting ourselves be distracted by reforms that don’t actually get the necessary result.

[patientrenter]

[quote=HLS]….
Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem……[/quote]

You know, HLS, that doing something like requiring a minimum down payment of 20% on owner occupied homes, and 30% otherwise, is not being considered as a fix for our financial problems precisely because it would… fix them.

Everything is being done to keep home prices high. Measures to clamp down on foolish lending are implemented only if they leave enough wiggle room for home prices to stay high. So proposals like tinkering with disclosures for consumer protection are now very popular, because everyone knows they will be ineffective. Changing loan applications will have zero impact. The fact that during the bubble everyone was lying on loan applications, and no one was checking, and no one was even reading the loan agreements they were signing, is now conveniently ignored.

We need to get rid of down payments of less than some reasonable number, like 20%, for once and for all. Otherwise the madness and economic damage will continue for many more years, and we’re just wasting our time and letting ourselves be distracted by reforms that don’t actually get the necessary result.

[patientrenter]

[quote=HLS]….
Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem……[/quote]

You know, HLS, that doing something like requiring a minimum down payment of 20% on owner occupied homes, and 30% otherwise, is not being considered as a fix for our financial problems precisely because it would… fix them.

Everything is being done to keep home prices high. Measures to clamp down on foolish lending are implemented only if they leave enough wiggle room for home prices to stay high. So proposals like tinkering with disclosures for consumer protection are now very popular, because everyone knows they will be ineffective. Changing loan applications will have zero impact. The fact that during the bubble everyone was lying on loan applications, and no one was checking, and no one was even reading the loan agreements they were signing, is now conveniently ignored.

We need to get rid of down payments of less than some reasonable number, like 20%, for once and for all. Otherwise the madness and economic damage will continue for many more years, and we’re just wasting our time and letting ourselves be distracted by reforms that don’t actually get the necessary result.

[patientrenter]

[quote=HLS]….
Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem……[/quote]

You know, HLS, that doing something like requiring a minimum down payment of 20% on owner occupied homes, and 30% otherwise, is not being considered as a fix for our financial problems precisely because it would… fix them.

Everything is being done to keep home prices high. Measures to clamp down on foolish lending are implemented only if they leave enough wiggle room for home prices to stay high. So proposals like tinkering with disclosures for consumer protection are now very popular, because everyone knows they will be ineffective. Changing loan applications will have zero impact. The fact that during the bubble everyone was lying on loan applications, and no one was checking, and no one was even reading the loan agreements they were signing, is now conveniently ignored.

We need to get rid of down payments of less than some reasonable number, like 20%, for once and for all. Otherwise the madness and economic damage will continue for many more years, and we’re just wasting our time and letting ourselves be distracted by reforms that don’t actually get the necessary result.

[patientrenter]

[quote=HLS]….
Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem……[/quote]

You know, HLS, that doing something like requiring a minimum down payment of 20% on owner occupied homes, and 30% otherwise, is not being considered as a fix for our financial problems precisely because it would… fix them.

Everything is being done to keep home prices high. Measures to clamp down on foolish lending are implemented only if they leave enough wiggle room for home prices to stay high. So proposals like tinkering with disclosures for consumer protection are now very popular, because everyone knows they will be ineffective. Changing loan applications will have zero impact. The fact that during the bubble everyone was lying on loan applications, and no one was checking, and no one was even reading the loan agreements they were signing, is now conveniently ignored.

We need to get rid of down payments of less than some reasonable number, like 20%, for once and for all. Otherwise the madness and economic damage will continue for many more years, and we’re just wasting our time and letting ourselves be distracted by reforms that don’t actually get the necessary result.

[CA renter]

[quote=HLS]AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…[/quote]

From the link:

Prohibit a lender from making a loan without regard to borrowers’ ability to repay the loan from income and assets other than the home’s value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a “pattern or practice.”
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner’s insurance for all first-lien mortgage loans.
“These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system,” said Governor Randall S. Kroszner.

In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer’s principal dwelling, regardless of whether the loan is higher-priced:

Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home’s value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers’ loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer’s principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer’s credit history.
——————-

It states that this will apply to loans that are basically “sub-prime” loans. These sound like some much needed regulations, HLS. Why don’t you like them?

[CA renter]

[quote=HLS]AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…[/quote]

From the link:

Prohibit a lender from making a loan without regard to borrowers’ ability to repay the loan from income and assets other than the home’s value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a “pattern or practice.”
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner’s insurance for all first-lien mortgage loans.
“These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system,” said Governor Randall S. Kroszner.

In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer’s principal dwelling, regardless of whether the loan is higher-priced:

Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home’s value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers’ loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer’s principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer’s credit history.
——————-

It states that this will apply to loans that are basically “sub-prime” loans. These sound like some much needed regulations, HLS. Why don’t you like them?

[CA renter]

[quote=HLS]AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…[/quote]

From the link:

Prohibit a lender from making a loan without regard to borrowers’ ability to repay the loan from income and assets other than the home’s value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a “pattern or practice.”
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner’s insurance for all first-lien mortgage loans.
“These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system,” said Governor Randall S. Kroszner.

In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer’s principal dwelling, regardless of whether the loan is higher-priced:

Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home’s value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers’ loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer’s principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer’s credit history.
——————-

It states that this will apply to loans that are basically “sub-prime” loans. These sound like some much needed regulations, HLS. Why don’t you like them?

[CA renter]

[quote=HLS]AHHHHH it MUST be a good thing,,
Senor Bernanke is behind it!!

http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm

I feel SO MUCH better now……

Lying about income and allowing 100% financing had NOTHING to do with the housing bubble, it was not getting loan disclosures early enough that was the problem,,, NOW I GET IT !!! Give ’em a few months and they will fix it all through regulation, it’s so simple to fix…[/quote]

From the link:

Prohibit a lender from making a loan without regard to borrowers’ ability to repay the loan from income and assets other than the home’s value. A lender complies, in part, by assessing repayment ability based on the highest scheduled payment in the first seven years of the loan. To show that a lender violated this prohibition, a borrower does not need to demonstrate that it is part of a “pattern or practice.”
Require creditors to verify the income and assets they rely upon to determine repayment ability.
Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years. This rule is substantially more restrictive than originally proposed.
Require creditors to establish escrow accounts for property taxes and homeowner’s insurance for all first-lien mortgage loans.
“These changes have made for better rules that will go far in protecting consumers from unfair practices and restoring confidence in our mortgage system,” said Governor Randall S. Kroszner.

In addition to the rules governing higher-priced loans, the rules adopt the following protections for loans secured by a consumer’s principal dwelling, regardless of whether the loan is higher-priced:

Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home’s value.
Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. In addition, servicers are required to credit consumers’ loan payments as of the date of receipt and provide a payoff statement within a reasonable time of request.
Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer’s principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans. Consumers cannot be charged any fee until after they receive the early disclosures, except a reasonable fee for obtaining the consumer’s credit history.
——————-

It states that this will apply to loans that are basically “sub-prime” loans. These sound like some much needed regulations, HLS. Why don’t you like them?

[Author]

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