The fear and panic over this bill is widespread throughout the mortgage broker community.
What's interesting is that the bill gives mortgage brokers what they've said they wanted: the end of predatory lending....unless they really don't want to have to stop doing any of the things the bill prohibits, in which case we've called their bluff.
When skimming related articles it became obvious that many brokers are not happy with this bill. I haven't yet taken the time to determine what precisely they are objecting to.
Ran across this article opining about this bill in my morning paper.
......We're going to wind up with new and onerous regulations in the business of making loans to consumers for purchasing homes, and as a result, fewer loans will be made and we'll all be worse off. Those who will be penalized the most will be the low-income families who the new regulations will supposedly protect......
..
Not to sound too heartless, but did anyone consider that maybe, just maybe, the poor shouldn't be owning a home? Maybe they should rent a cheap apartment and focus on improving their overall circumstances, save up as much as they can here and there, and break out of the "poor" categorization before even considering making such an enormous financial commitment.
Not to sound too heartless, but did anyone consider that maybe, just maybe, the poor shouldn't be owning a home?
Not at all. I'm not even "poor" and I don't consider it my "right" to own a home. You get the "right" to own a home by being frugal (renting a cheap place) and saving up money for several years until you can afford to buy.
We already have a homeownership program for the poor. It's called FHA and it's been around since 1934.
The author of that article works for an organization that promotes conservative, pro-life issues for black church goers. She is blaming Barney Frank for black people staying poor. Yes, it's all Barney Frank's fault. Great logic. Why didn't I think of that?
.. It appears Ms Coakley is being proactive? If this is predictive of the kind of acceptance HR 3915 will receive, it looks like there is going to be some trouble ahead.
.. YSP Trouble in Massachusetts
Bank of America, Wells Fargo, Lehman Brothers and other financial powerhouses are threatening to pull out of the wholesale mortgage-lending market in Massachusetts because of Attorney General Martha Coakley's proposed new mortgage-broker regulations, the Herald has learned......
......The main issue dividing Coakley and the industry is how mortgage brokers are compensated.
Coakley wants to crack down on so-called "yield spread premiums," in which mortgate brokers are effectively paid via higher interest rates on mortgages, rather than upfront point payments from borrowers.
Mortgage brokers generally act as middlemen between large lenders - often based out of state - and people taking out loans. Coakley and other critics have said "yield spread premiums" have been abused by the mortgage industry and played a role in the recent rash of foreclosures sweeping the state.
One source confirmed that large wholesale lenders or their units - such as Bank of America, Wells Fargo and Lehman Brothers - have said they won't participate in the Massachusetts market until the mortgage-broker compensation issue is resolved.......
..
Comments
What's interesting is that the bill gives mortgage brokers what they've said they wanted: the end of predatory lending....unless they really don't want to have to stop doing any of the things the bill prohibits, in which case we've called their bluff.
When skimming related articles it became obvious that many brokers are not happy with this bill. I haven't yet taken the time to determine what precisely they are objecting to.
Ran across this article opining about this bill in my morning paper.
STAR Parker: How to Limit Home Ownership for Poor
......We're going to wind up with new and onerous regulations in the business of making loans to consumers for purchasing homes, and as a result, fewer loans will be made and we'll all be worse off. Those who will be penalized the most will be the low-income families who the new regulations will supposedly protect......
..
Crazy and heartless, I know.
Not at all. I'm not even "poor" and I don't consider it my "right" to own a home. You get the "right" to own a home by being frugal (renting a cheap place) and saving up money for several years until you can afford to buy.
We already have a homeownership program for the poor. It's called FHA and it's been around since 1934.
The author of that article works for an organization that promotes conservative, pro-life issues for black church goers. She is blaming Barney Frank for black people staying poor. Yes, it's all Barney Frank's fault. Great logic. Why didn't I think of that?
http://www.urbancure.org/about.asp
Brokers are not happy because the bill gives them precisely what they've been saying they want:
an end to predatory lending!
an end to the abuse of Yield Spread Premiums!
They're not happy because they've been making a sh*tload of money off of being predatory and abusing YSPs.
Not ony are they not happy, they're insanely frightened.
Tim, perfectfire - You two are out of touch. This is the era of entitlement, didn't you know that?
..
Yeild Spread Premium
It appears Ms Coakley is being proactive? If this is predictive of the kind of acceptance HR 3915 will receive, it looks like there is going to be some trouble ahead.
..
YSP Trouble in Massachusetts
Bank of America, Wells Fargo, Lehman Brothers and other financial powerhouses are threatening to pull out of the wholesale mortgage-lending market in Massachusetts because of Attorney General Martha Coakley's proposed new mortgage-broker regulations, the Herald has learned......
......The main issue dividing Coakley and the industry is how mortgage brokers are compensated.
Coakley wants to crack down on so-called "yield spread premiums," in which mortgate brokers are effectively paid via higher interest rates on mortgages, rather than upfront point payments from borrowers.
Mortgage brokers generally act as middlemen between large lenders - often based out of state - and people taking out loans. Coakley and other critics have said "yield spread premiums" have been abused by the mortgage industry and played a role in the recent rash of foreclosures sweeping the state.
One source confirmed that large wholesale lenders or their units - such as Bank of America, Wells Fargo and Lehman Brothers - have said they won't participate in the Massachusetts market until the mortgage-broker compensation issue is resolved.......
..