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

[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?

[ucodegen]

It is interesting to note that increasing down payments is similar to what was done by the SEC after the great depression with respect to margin on investment accounts. Prior to the great depression, margin accounts were almost unlimited on the amount of margin a person could assume. After the great depression, the percentage of total assets you could have out on margin was limited…

Requiring 20% down for owner occupied, and 30% down on investment property sounds reasonable.

[ucodegen]

It is interesting to note that increasing down payments is similar to what was done by the SEC after the great depression with respect to margin on investment accounts. Prior to the great depression, margin accounts were almost unlimited on the amount of margin a person could assume. After the great depression, the percentage of total assets you could have out on margin was limited…

Requiring 20% down for owner occupied, and 30% down on investment property sounds reasonable.

[ucodegen]

It is interesting to note that increasing down payments is similar to what was done by the SEC after the great depression with respect to margin on investment accounts. Prior to the great depression, margin accounts were almost unlimited on the amount of margin a person could assume. After the great depression, the percentage of total assets you could have out on margin was limited…

Requiring 20% down for owner occupied, and 30% down on investment property sounds reasonable.

[ucodegen]

It is interesting to note that increasing down payments is similar to what was done by the SEC after the great depression with respect to margin on investment accounts. Prior to the great depression, margin accounts were almost unlimited on the amount of margin a person could assume. After the great depression, the percentage of total assets you could have out on margin was limited…

Requiring 20% down for owner occupied, and 30% down on investment property sounds reasonable.

[ucodegen]

It is interesting to note that increasing down payments is similar to what was done by the SEC after the great depression with respect to margin on investment accounts. Prior to the great depression, margin accounts were almost unlimited on the amount of margin a person could assume. After the great depression, the percentage of total assets you could have out on margin was limited…

Requiring 20% down for owner occupied, and 30% down on investment property sounds reasonable.

[HLS]

The sysytem is twisted and broken. The clowns in govt allowed the housing bubble to inflate by allowing 100% financing combined with stated income. PERIOD. THAT was the cause of the bubble.

It wasn’t Greenspan or low rates that were the cause. I am yet to hear anyone from the govt explain this.

Millions has been spent trying to convince the idiotic American sheeple that “nobody” saw this coming and it could not have been prevented and how THEY are going to prevent it from happening again.

[HLS]

The sysytem is twisted and broken. The clowns in govt allowed the housing bubble to inflate by allowing 100% financing combined with stated income. PERIOD. THAT was the cause of the bubble.

It wasn’t Greenspan or low rates that were the cause. I am yet to hear anyone from the govt explain this.

Millions has been spent trying to convince the idiotic American sheeple that “nobody” saw this coming and it could not have been prevented and how THEY are going to prevent it from happening again.

[HLS]

The sysytem is twisted and broken. The clowns in govt allowed the housing bubble to inflate by allowing 100% financing combined with stated income. PERIOD. THAT was the cause of the bubble.

It wasn’t Greenspan or low rates that were the cause. I am yet to hear anyone from the govt explain this.

Millions has been spent trying to convince the idiotic American sheeple that “nobody” saw this coming and it could not have been prevented and how THEY are going to prevent it from happening again.

[HLS]

The sysytem is twisted and broken. The clowns in govt allowed the housing bubble to inflate by allowing 100% financing combined with stated income. PERIOD. THAT was the cause of the bubble.

It wasn’t Greenspan or low rates that were the cause. I am yet to hear anyone from the govt explain this.

Millions has been spent trying to convince the idiotic American sheeple that “nobody” saw this coming and it could not have been prevented and how THEY are going to prevent it from happening again.

[HLS]

The sysytem is twisted and broken. The clowns in govt allowed the housing bubble to inflate by allowing 100% financing combined with stated income. PERIOD. THAT was the cause of the bubble.

It wasn’t Greenspan or low rates that were the cause. I am yet to hear anyone from the govt explain this.

Millions has been spent trying to convince the idiotic American sheeple that “nobody” saw this coming and it could not have been prevented and how THEY are going to prevent it from happening again.

[HLS]

The clowns in govt ALLOWED the housing bubble to inflate because it was good for the economy, by ALLOWING 100% financing to people who lied about their income & assets. I am yet to hear anyone from the govt convey this.

It’s THAT simple. GREED.
Greenspan and low interest rates werent the problem. It was lack of a down payment.
Millions has been spent talking about what caused the bubble, and ignorant people keep saying that “nobody” saw it coming.

Requiring at least a 10% down payment, millions would have never been able to “buy” a house and prices would have never been pushed up.

Rates are low today and millions cannot qualify for one reason or another. FHA is the new sucker’s loan and the next subprime (without a prepay penalty)

If you don’t abuse a child, then you don’t need regulations against child abuse.
If you don’t drive drunk, you don’t need regulations against driving drunk.
If you aren’t ignorant or greedy then you don’t need twisted govt regulations against being ignorant or greedy.

The regulations to “protect” consumers are a govt attempt to avoid admitting what the real problem was/is…perhaps they don’t even understand.

Appraisal regulations and disclosure regulations are not going to fix the stupidity and greed of millions of people.
I never said that ARMS or prepay penalties were a good thing…
I explain options to people in words that they can understand, but now I have to be regulated by APOR on the week that a loan is locked and other mumbo jumbo.

If the govt is creating all this regulation to protect consumers, who is going to protect people from the govt ???

You cannot regulate that people be protected from themselves. You cannot regulate stupidity, ignorance and greed however the govt is trying by saying they know what is good for people, and it’s more regulations as the mumbo jumbo in the post above… Do you feel safer with these regulations in place ??… HLS

[HLS]

The clowns in govt ALLOWED the housing bubble to inflate because it was good for the economy, by ALLOWING 100% financing to people who lied about their income & assets. I am yet to hear anyone from the govt convey this.

It’s THAT simple. GREED.
Greenspan and low interest rates werent the problem. It was lack of a down payment.
Millions has been spent talking about what caused the bubble, and ignorant people keep saying that “nobody” saw it coming.

Requiring at least a 10% down payment, millions would have never been able to “buy” a house and prices would have never been pushed up.

Rates are low today and millions cannot qualify for one reason or another. FHA is the new sucker’s loan and the next subprime (without a prepay penalty)

If you don’t abuse a child, then you don’t need regulations against child abuse.
If you don’t drive drunk, you don’t need regulations against driving drunk.
If you aren’t ignorant or greedy then you don’t need twisted govt regulations against being ignorant or greedy.

The regulations to “protect” consumers are a govt attempt to avoid admitting what the real problem was/is…perhaps they don’t even understand.

Appraisal regulations and disclosure regulations are not going to fix the stupidity and greed of millions of people.
I never said that ARMS or prepay penalties were a good thing…
I explain options to people in words that they can understand, but now I have to be regulated by APOR on the week that a loan is locked and other mumbo jumbo.

If the govt is creating all this regulation to protect consumers, who is going to protect people from the govt ???

You cannot regulate that people be protected from themselves. You cannot regulate stupidity, ignorance and greed however the govt is trying by saying they know what is good for people, and it’s more regulations as the mumbo jumbo in the post above… Do you feel safer with these regulations in place ??… HLS

[HLS]

The clowns in govt ALLOWED the housing bubble to inflate because it was good for the economy, by ALLOWING 100% financing to people who lied about their income & assets. I am yet to hear anyone from the govt convey this.

It’s THAT simple. GREED.
Greenspan and low interest rates werent the problem. It was lack of a down payment.
Millions has been spent talking about what caused the bubble, and ignorant people keep saying that “nobody” saw it coming.

Requiring at least a 10% down payment, millions would have never been able to “buy” a house and prices would have never been pushed up.

Rates are low today and millions cannot qualify for one reason or another. FHA is the new sucker’s loan and the next subprime (without a prepay penalty)

If you don’t abuse a child, then you don’t need regulations against child abuse.
If you don’t drive drunk, you don’t need regulations against driving drunk.
If you aren’t ignorant or greedy then you don’t need twisted govt regulations against being ignorant or greedy.

The regulations to “protect” consumers are a govt attempt to avoid admitting what the real problem was/is…perhaps they don’t even understand.

Appraisal regulations and disclosure regulations are not going to fix the stupidity and greed of millions of people.
I never said that ARMS or prepay penalties were a good thing…
I explain options to people in words that they can understand, but now I have to be regulated by APOR on the week that a loan is locked and other mumbo jumbo.

If the govt is creating all this regulation to protect consumers, who is going to protect people from the govt ???

You cannot regulate that people be protected from themselves. You cannot regulate stupidity, ignorance and greed however the govt is trying by saying they know what is good for people, and it’s more regulations as the mumbo jumbo in the post above… Do you feel safer with these regulations in place ??… HLS

[HLS]

The clowns in govt ALLOWED the housing bubble to inflate because it was good for the economy, by ALLOWING 100% financing to people who lied about their income & assets. I am yet to hear anyone from the govt convey this.

It’s THAT simple. GREED.
Greenspan and low interest rates werent the problem. It was lack of a down payment.
Millions has been spent talking about what caused the bubble, and ignorant people keep saying that “nobody” saw it coming.

Requiring at least a 10% down payment, millions would have never been able to “buy” a house and prices would have never been pushed up.

Rates are low today and millions cannot qualify for one reason or another. FHA is the new sucker’s loan and the next subprime (without a prepay penalty)

If you don’t abuse a child, then you don’t need regulations against child abuse.
If you don’t drive drunk, you don’t need regulations against driving drunk.
If you aren’t ignorant or greedy then you don’t need twisted govt regulations against being ignorant or greedy.

The regulations to “protect” consumers are a govt attempt to avoid admitting what the real problem was/is…perhaps they don’t even understand.

Appraisal regulations and disclosure regulations are not going to fix the stupidity and greed of millions of people.
I never said that ARMS or prepay penalties were a good thing…
I explain options to people in words that they can understand, but now I have to be regulated by APOR on the week that a loan is locked and other mumbo jumbo.

If the govt is creating all this regulation to protect consumers, who is going to protect people from the govt ???

You cannot regulate that people be protected from themselves. You cannot regulate stupidity, ignorance and greed however the govt is trying by saying they know what is good for people, and it’s more regulations as the mumbo jumbo in the post above… Do you feel safer with these regulations in place ??… HLS

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