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Maybe something like this will constitute the tipping point demonstrating that government can't be everybody's mommy.
Wouldn't self employed people and other legal citizens with odd jobs be able to use bank statements and tax returns and be fine?
GD COMMUNISTS !!
What it is doing is regulating folks that are not otherwise regulated. The folks exempted would be regulated by the Federal Reserve, the FDIC, the NCUA, the OTS, perhaps the FCA, and/or a state regulatory agency.
The writer has an agenda and perhaps a lack of knowledge of the subject.
No it isn't. It's a mortgage broker's advertising blog.
"Did I mention that I have a fabulous and talented team of people that help me serve our clients. We call ourselves Team1. Visit our website to meet us, or give us a call or email if we can help you clarify things or arrange financing. It’s what we do.
Marc Brinitzer Big Valley Mortgage Team1"
http://lendingclarity.com/about
Watch what happens to that market over the next 24 months.
And while they are at it, if they want to stop people from taking chances why don’t they outlaw those Indian Casinos?
Oh, that’s right, they can’t.
The first part in bunk. BANK STATEMENTS suffice, therefore people who are self-employed, receiving alimony, etc. can show what they’ve been depositing. But unfortunately, it does not cut illegals out, since many of them have bank accounts.
As for “Minnesota’s bill also bans all negative amortization loans”, I sure hope they didn’t wipe out reverse mortgages with that provision. They are often critical to elderly retired people remaining in their homes with a decent standard of living, but they do indeed technically constitute “negative amortization loans”, because the homeowner is receiving regular loans secured by the value of the house, while their equity in the house is being gradually reduced.
Why didn’t they pass this law ten years ago? With the current state of the market such a law isn’t necessary and will only make things worse.
Can anybody tell me, what is an “unseasoned” second job?
Also think about someone who is doing the exact same work, but went from being a W2 employee, to being paid a 1099 (which is considered self-employed.)
Traditional loans require two years self employed, so even if the above example made a million dollars a month, couldn’t get financing for two years regardless, even on stated income. That’s where no doc comes in to play. Of course said person has to have good credit, and there’s a sense of personal responsibility on both the part of the borrower and the mortgage representative as to whether their new income source should be sufficient...but again, this person is also stuck.
Good.
And if all the vultures who have been making a living off of undocumented loans are crushed in the process, double good.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Liberals. The rats don’t want anyone to work hard and get their own home. They screwed folks in order to come to the rescue with a govm’t provided solution that consists of using other people’s money to buy the houses.
The only problem I have with this is that it does nto apply to all mortgage lenders. If you have filed taxes for the past 2 years you have documentation.