According to the Congressional Black Criminal Caucus, that's racist!
Posted on 04/19/2011 9:25:22 AM PDT by NormsRevenge
WASHINGTON (Reuters) - Lenders would be required to make sure prospective borrowers have the ability to repay their mortgages before giving them a loan, under a proposal released by the Federal Reserve on Tuesday.
The rule, which is required by the Dodd-Frank financial reform law, is intended to tighten lending standards and combat home lending abuses that contributed to the 2007-2009 financial crisis.
The rule would establish minimum underwriting standards for most mortgages and lenders could be sued by the borrower if they do not take the proper steps to check a borrowers ability to repay the loan.
The law does provide protections from this type of liability if a loan meets the specific standards that are part of a "qualified mortgage."
In its proposal, the Fed is seeking comment on two possible ways of defining a qualified mortgage.
Under the first scenario the loan could not include interest-only payments, a balloon payment and regular payments could not result in the principle of the loan increasing.
Under the alternative, the loan would have to meet all the standards laid out under the first option and meet additional requirements such as having the lender verify a borrower's employment status and debt obligations.
(Excerpt) Read more at finance.yahoo.com ...
Never have so many QuasiGubamintal Black Ops agencies worked so hard to destroy a nation and its underpinnings.
Hindsight is 20/20 they say.. Oversight is priceless..
Who put us in the mess, Ben? Fess up
Unless of course you are an illegal or a minority and then there will be a whole new set of rules for you.
The abuses came from Democrats demanding “minorities” get home loans, so banks were required to make sub-prime loans. Now Democrats want to claim they were innocent and will clean up the problem.
Gee, if I was running a bank, I would not need the feds to tell me this. MORONS!
Huh? That's insane.
OF course....DEMOCRATS create a problem....and then create a bureacracy to FIX the problem, which of course doesn’t....but, that’s beside the point, to them....they “created jobs.”
So why doesn’t the Fed follow their own rules? HUD is offering houses for 100 bucks down.
http://www.freerepublic.com/focus/f-chat/2705785/posts
“Lenders would be required to make sure prospective borrowers have the ability to repay their mortgages before giving them a loan”
What a novel idea.
Just where would we be without the genius of government?
sarc
meanwhile the turd world scammers among us gonna figure out how to lie to the lender, get the loan, then sue the lender for making the loan....
Who the hell came up with that plan?
What about us broke folks? (Number growing daily) Where will we live?
What did Barney Fag say about this?
I have an issue with the govt telling private business how to run their private business.
If you were running a bank and knew you could sell the mortgage within 30 days there wouldn’t be any concern if it would be repaid.
This will last until some community organizers whine to Congress that the banks won’t loan to “their people”.
Congress will require the banks to make bad loans to the special people.
The banks will complain to Congress that they can’t stay in business maing bad loans.
Congress will set up a mortgage guarantee program that will buy the mortgages from the banks so the banks aren’t stuck with bad loans.
The banks, relieved of the consequences of making bad loans, will make lots of them while raking in the origination fees.
These mortgages will be bundled and securitized.
.
.
.
well, you know how this turns out, right?
The example in your link is for a person with $50,000 annual income buying a $172,000 house. That is insane.
Welcome to The World Of Hope And Change. The very scariest thing is 43% of the people in this country think Zero is magnificent.
maing -> making
>>> Lenders would be required to make sure prospective borrowers have the ability to repay their mortgages before giving them a loan <<<
I would love to see how ‘Lenders’ are supposed to make borrowers ‘guarantee’ this? And how they are going to enforce it?
Once you sign on a loan application, you are a slave for that duration? You can not even lose a job, declare bankruptcy EVER?
Those loans are for his people. We are not his people.
The absurdity of attaching those two names to anything that promises sound lending practices cannot be exaggerated.
According to the Congressional Black Criminal Caucus, that's racist!
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