!
I had a strange experience two weeks ago while trying to refinance our mortgage. Credit scores were very high and not a problem, but the appraisal came in very low. Sales in our neighborhood have been from repo houses and thus very low.
We wanted to ask the apraiser if he’d considered a few energy and ADA updates we had installed in our house. Our banker said that we couldn’t question the appraisal, that we would be fined as would she.
I’ve never heard of the consumer being fined for asking questions of an appraiser that the consumer paid to do an appraisal.
Does anyone know anything about this?
Constitution - hurt.
Federalism - hurt.
Increasing size of "federal" power via non-legislative fiat-driven agencies - Augments even further.
Call me crazy, but didn’t banks have all these guidelines in place before the creation of this useless new federal agency? Didn’t the Community Reinvestment Act remove these guidelines?
I’m not seeing anything unreasonable here but I think that 42% number is high.
43%!? Holy cow! That’s on helluva upside limit!
When I bought my first house in 1989, my upside limit was 33% and I was a terrific risk.
Geez.
Stupid, stupid, stupid.
Help the no money down deal is what maade the mess and now one has to prove he can pay the mortgage.
Back to grid one prove your worth the loan,the free ride company is out of business.
I know none of us like this agency or big nanny state government. However, the details themselves sound like long overdue common sense.
Looks racist to me. Its all about having a job and be able to pay.
"Qualified mortgages will be given protection for the bank from lawsuits filed by troubled borrowers or buyers of mortgage-backed bonds."
Another crony capitalism back room deal. How are consumers protected by this? The new rules don't even use a reasonable Debt to Income (DTI) ratio to consider the loan "qualified". Also, how does this protect the secondary market, which banks rely on heavily to keep the gravy train tumbling along...?
The only problem I see is if someone doesn’t use credit cards and has no credit score. A person may have no debt, save money, and pay cash for everything but they won’t look good on paper because of the lack of a credit score. Then what?
Loan documents used to be fairly easy to fill out. Now they’re called loan packages because they’re so thick.
This will further injure the housing market, but that’s the purpose of regulations.
The new rules will take effect Jan. 21. Lenders have a year to fully implement these rules.