New bank rules

[ACMF74]

Under sweeping financial overhauls that have now passed the House and Senate, home buyers won't be able to get a mortgage without producing pay stubs or other evidence they can make their monthly payments. A new consumer watchdog will police lenders who offer impossible-to-resist subprime mortgages and then jack up the interest rates to impossible-to-pay levels.

what a fukin novel idea......

[Aptyp]

crack dealers better start printing pay-stubs.

[mrsleeve]

Yeah didnt banks used to do that till the GOVT told them not to??? Said that was too discriminatory to the poor people, al la barney frank

[bmwstephen]

government does a great job of breaking your leg, then handing you a crutch, and telling you without them you can't walk

[z31maniac]

I bought a house in September of last year.

Had to produce pay stubs, last two years tax return, checking/savings/401k statements.......

[joshh]

Yeah didnt banks used to do that till the GOVT told them not to??? Said that was too discriminatory to the poor people, al la barney frank

Bingo!

And this financial "reform" wont apply to either Freddie Mac or Fannie Mae. Can you say Government control....we are truly doomed.

[z31maniac]

Are Fannie/Freddie also responsible for FHA loans?

Their lending guildines are still shit. It's unbelievable the amount of house they will qualify you for based on their 45% of gross payment suggestions. 45% of gross is well over 50% of your net.

I can't imagine if half of my take home income every month was spent on housing. My girlfriend and I split the house payment down the middle, my half is roughly 11% of take home income, that seems like a comfortable number to me.

But I do realize housing is much more expensive in other parts of the country.

[Restoman]

Here is the funny part. No one made these people get mortgages. They put themselves in this boat, and sank it themselves. NOT ONE OUNCE OF PITY.

[briansjacobs]

Under sweeping financial overhauls that have now passed the House and Senate, home buyers won't be able to get a mortgage without producing pay stubs or other evidence they can make their monthly payments. A new consumer watchdog will police lenders who offer impossible-to-resist subprime mortgages and then jack up the interest rates to impossible-to-pay levels.

what a fukin novel idea......

FNMA,FHLMC were always like this, for a brief time they allowed an expanded criteria program that with a credit score of 720 or higher you could simply state your income and fore go paystubs,W2 but will still need to sign a 4506T.

the new watchdog is now going to be on a govt level, there has always been (in most states) a watchdog but it was on the state level. When the level of fraud went up the departments where overwhelmed and could no longer regulate, all they did was fraud investigation as they did not have the funding to grow the department.

Yeah didnt banks used to do that till the GOVT told them not to??? Said that was too discriminatory to the poor people, al la barney frank

Barney Frank had nothing to with this, FNMA/FHLMS adopted the subprime guidlines and tried to make them work for masses. The problem was not with the programs themselves, the problems was with the banks not properly underwriting them, not following the FNMA/FHLMS guidelines.

[briansjacobs]

Here is the funny part. No one made these people get mortgages. They put themselves in this boat, and sank it themselves. NOT ONE OUNCE OF PITY.

alot of this is greed, alot of it is ignorance, and alot of people were just tricked into these mortgages. People want a $500k house but can only afford a $300k house, mortgage brokers would sell them a 2% COSI/COFI loan that will eventually adjust up to 7%, the plan being that they sell the house and make a profit, alot of people got caught in the market crash and could not sell and then could not refinance either. there is alot more to it than that, but that is a start. I do not feel sorry for the scamers, I feel sorry for the people that got scammed

[z31maniac]

^Those people were dumb enough to think that 10%+ per year market appreciation was going to continue indefinitely.

[briansjacobs]

^Those people were dumb enough to think that 10%+ per year market appreciation was going to continue indefinitely.

I agree completly, but in most cases that I saw people were scammed by professionals. The mortgage business was filled with used car sales man. Seriously, guys that would make 40-50K a year in car sales could make $150+ in the mortgage business. I owned a Mortgage Brokerage from 1999 till I sold the business just before the market crashed in 2006. My internal underwritting guidelines were beyond that FNMA and FHLMC. I self regulated my agents, and turned fradulent files into the state immediatly, 1 of which resulted in 5 arrest.

[ACMF74]

didnt this start when Clinton was still in office????

[briansjacobs]

didnt this start when Clinton was still in office????

what specifically, alot of stuff started while Clinton was in office, and some under Bush Sr.

I dont think it has much to do with who was in office at the time

[joshh]

alot of this is greed, alot of it is ignorance, and alot of people were just tricked into these mortgages. People want a $500k house but can only afford a $300k house, mortgage brokers would sell them a 2% COSI/COFI loan that will eventually adjust up to 7%, the plan being that they sell the house and make a profit, alot of people got caught in the market crash and could not sell and then could not refinance either. there is alot more to it than that, but that is a start. I do not feel sorry for the scamers, I feel sorry for the people that got scammed

No one was "tricked" into buying a home. They made a conscious decision to buy. Period. They were uneducated and who's fault is that?
That's the problem with liberals, personal responsibility is nonexistent.