Posted by jv on March 05, 2010 at 08:14:16:
In Reply to: Take Action on the SAFE Mortgage Act posted by Eugene NC on March 04, 2010 at 21:07:21:
This is what I wrote.
-------------------------
The requirement of becoming a mortgage specialist/originator, or anything of the sort is a preposterous proposal when concerning small companies/individuals.I understand the need to regulate large companies, i.e. banks. So that they are not allowed to make egregious loans or adopt predatory lending habits. But this act does the opposite of that!
By only allowing mortgage originator/officers, or whatever to lend money on primary residencies, your creating a higher barrier to entry, thereby giving large companies a huge edge. Joe Smith from the local town can't take a 6 month course, he has a real job that won't allow it. The banks can afford this, and now you've taken away from so many people.
The small level operations that lend money are an efficient market, that you will completely destroy with this Act. You will make it impossible for thousands, if not hundreds of thousands of people to be unable to secure lending on a home.
I say this because the people who wouldn't qualify for a bank's lending, can qualify from Joe Smith. Joe Smith should be allowed to sell a home to a person who doesn't qualify for a bank loan, based on his own personal judgment.
If the borrower ends up not being able to pay, the only person hurt is Joe Smith, he has to take back the home and try to sell it again. The borrower is at the same place they were before, arguably in a better place because they've had somewhere to LIVE over the past few months/year.
This process creates ZERO drag on the US economy.
If a bank with bad policies lends to three million people, then the US economy is HURT, your ONLY allowing for exactly THAT to happen with this act.
Reword the document that small lenders can sell THE PROPERTY THAT THEY OWN, without any of this red-tape.
- Re: Take Action on the SAFE Mortgage Act Eugene NC 18:57:45 03/05/10 (1)
- Re: Take Action on the SAFE Mortgage Act joe--ga 15:11:28 03/06/10 (0)