Dodd-Frank Has Crippled Our Economic Recovery. This Bill Will Unleash Real Growth Again.

Dailty Signal ^ | 05/18/2017 | Sondra Clark

[ForYourChildren]

Have you noticed that free checking accounts are now nearly nonexistent, and locally owned stores are increasing the $5 minimum charge on debit cards?

These are not the result of some financial conspiracy. They are a direct result of Dodd-Frank regulations.

After the financial crash of 2008, President Barack Obama decided to increase the role of the federal government in the economy and impose massive new regulations on banks. As one might assume, this hasn’t worked out so well.

Included in the over 3,500-page Dodd-Frank bill are rules restricting access to credit for investors and homebuyers, raising lending costs for entrepreneurs, and making it harder for small businesses to get capital to start or grow.

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In summary, Dodd-Frank has been cited by economists as the primary reason America has had a historically slow economic recovery since 2008.

Reform Is Urgently Needed

Enter the Financial CHOICE Act (or the Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs Act), which was introduced this April by House Financial Services Committee Chairman Jeb Hensarling, R-Texas.

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[bankwalker]

That’s why mortgage brokers can be good. They know which lenders are offering deals at any given time.

[D-fendr]

yeppers..

“Without intervention by Waters (and a big assist from her co-conspirator Rep. Barney Frank), OneUnited was an extremely unlikely candidate for Troubled Asset Relief Program (TARP) funding. The Treasury Department indicated that it would only provide bailout funds to healthy banks to jump-start lending. However, Judicial Watch uncovered documents detailing the deplorable financial condition of OneUnited at the time of the cash infusion. In fact, just prior to the bailout, OneUnited received a “less than satisfactory rating.””

http://www.judicialwatch.org/corrupt-politicians-lists/washingtons-ten-most-wanted-corrupt-politicians-for-2011/#waters

[raybbr]

I say that because it’s a rippoff. What else would you call it? It’s money added to the mortgage that is basically a skim off the top.

If a person pays PMI on a mortgage and then they lose the house due to a job loss who gets the payout? The mortgage company. Who gets the property? The mortgage company. How is that insurance? They get paid off double.

If I have insurance on my car I at least get the value in cash that the car is worth if it’s totaled.

[raybbr]

Do you have any idea how PMI works? It adds about 10 to 20 percent to the monthly payment. If the loan fails the bank gets the PMI payout and the property. I call that theft.

People made loans for decades without PMI. If the loan failed then the bank got the property. How is it they need the extra payout now?

PMI is simply flushing money down into some bankers toil- pocket.

[9YearLurker]

That’s not theft. That is a voluntary market, without such loans being made otherwise being viable elsewhere—or they would have been made elsewhere.

There are significant frictional, management, legal and market costs with taking over such marginal loans that are often underwater to start with.

Again, such loans probably shouldn’t be made to begin with, and the borrower ought to wait until he/she has a sufficient down payment. But if banks are going to make those loans, the rest of us who rely upon our financial system being sound ought to be glad they require PMI for coverage.

[9YearLurker]

Actually your powers of observation are off. Food costs continue to be quite low. The rest of it is climbing terribly because of government interference in the market.

And the healthcare system has terrible waste and mismanagement because you’ve got the government and four- and five-party payments involved.

[raybbr]

PMI is a scam rip off. Period!

[9YearLurker]

Then only buy what you can afford to put 20% down on!

[SuziQ]

In mortgage lending Dodd-Frank helped big banks at the expense of community banks.

Big banks have the bucks to throw at political campaigns.

[SuziQ]

In addition, the newest rules from a couple of years ago mean that PMI is no longer dropped once the lender pays below 80% of the original loan.

Folks don't like PMI, but it's there because historically, if a borrower has less than 20% down, it's easier to walk away from a house, leaving the mortgage company in the lurch. At the Credit Union at which I work, it's dropped after the LTV based on the original value goes below 78%. However, if a borrower believes the home value has risen sufficiently to make the LTV below 80%, he or she can request an appraisal, at his or own expense, and if in fact the value supports it, the PMI can be dropped.

[texas booster]

Is this reappraisal to drop PMI common across the commercial banking industry? A reappraisal would then pay for itself in just a few months.

I have also been looking to move my loan away from a megabank, and prefer a local CU. I thought that all of the CU bundled their home loans together and resold them, just like any other lender.

[SuziQ]

My CU does bundle mortgages, and we do sell them, which is why we adhere to the FNMA and FHLMC regulations regarding verifications of income, appraisals, title searches, etc. We do NOT however, give up the servicing of our loans. All of the service, after the closing, until the loan is paid off, is done by our Mortgage Servicing Dept. So you wouldn't have to call West Hell NJ, or someplace in India, to speak to someone about your loan, that is assuming you can find a human to speak to at all!

We make loans in all 50 states, and you don't have to be a member to apply for a loan, but you would have to join the Credit Union before the loan closes.