Beware the Escape Hatch in the New Mortgage Rules

Omniland | Jan 10, 2013 05:20 PM ET Just an example of government price fixing which will cause a mess in the housing market. What housing market business (appraiser, title company, mortgage lender, realtor and so forth) would hire with this massive change looming? Answer: None. The disclosures in the housing market have always been immense and detailed. I can only imagine that the CFPB knows that there is more than ample disclosure and that no matter what disclosure they come up with the market will prevail. So what do they do? They simply outlaw market competition in financing because they just don‚€™t personally like some things. I have not hired in 6 years for the fear that I don`t want to lay someone off soon after I hire them. UNCERTAINTY.

York99 | Jan 10, 2013 05:24 PM ET I just refinanced and guess what...The Banks are doing this now. CNBC, Where do you come up with this S$%T???

BrianBallsofSteel | Jan 10, 2013 06:41 PM ET add another 56 signatures to a closing...heheh

CraigPGH | Jan 10, 2013 07:33 PM ET In other words, if you can`t document your income (on tax returns), get your income under the table, cheat on your taxes, can`t document your assets. Haven`t had a consistant job (no layoff, etc) No loan for you! Oh yea, you will need 20% down in cash that you can prove where it came from, or pay hefty mortgage insurance fees, if you can get mortgage insurance. While I agree with most of the above, there will be a lot less qualified buyers in the market, which will keep home prices depressed for awhile.

gopskeeter | Jan 10, 2013 08:37 PM ET Watchdog group Public Citizen and a U.S. senator are calling for an investigation into Bank of America‚€™s settlement with mortgage giant Fannie Mae in a dispute involving $1.4 trillion in loans. BURY THE CORP WELFARE SCUMBAGS!

maninthemoon850 | Jan 10, 2013 09:02 PM ET I am a private money (hard money) lender. I have operated with honesty and integrity for about 30 years. When the idiots securitizing loans and dicing and slicing them were throwing money out the window, I was pretty much lending on commercial instead of residential. There was no way I could compete with them. Who would have wanted to compete with them?? For the past 4 years, I have been one of the few sources of money in my market because the big lenders had their doors shut to 90 percent of the population at one time. These rules will make a permanet RENTER CLASS out of people that do not qualify for the cookie cutter loans. Welcome to the New Amerika. Buy rental property! There will be a big demand for it.

cbjulian | Jan 10, 2013 10:32 PM ET Some bad policy here. No longer can the farmer borrow on his land to begin farming. No longer can you use your real estate equity to start a business unless you want to work 2 jobs. How can anyone say they`ll have a job tomorrow? So an individual with a job and very little assets is a better risk than an individual with a half million in assets and no job? Bad for the economy usually the ones with assets start the small businesses.Aren`t they the backbone of the economy?

ndabunka | Jan 10, 2013 10:55 PM ET Am I the ONLY one who noticed this little clause... " The loan must be a prime loan, which means its interest rate cannot very too far from the national average prime mortgage rate"...? This makes it sound like the banks are going to be FORCED into offering prime loans to well qualified buyers. Guess what, I am one of those buyers and WELCOME this stipulation IF this means that I will be able to get a Prime or `very close to` Prime mortgage instead of having to shuffle through "offers" from lenders and submit applications and paperwork before they will even compete on price/rates. I KNOW that my prior (and current) loan gets packaged with other less-than-stellar loans so that the bank can make money on those lesser-value loans. I`d just like the benefit of that 2.5% (or lower) in

Shattered_Dreams | Jan 10, 2013 11:06 PM ET Kind of like lending money to the us government. Never going to get that money back

BooHootiehoo | Jan 11, 2013 06:09 AM ET Hey Craig - that`s 1/2 the people that got loans in 2005. Given most people have lousy jobs and are one dip in economy from losing their job, there aren`t a lot of people who are really qualified to own a house

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Beware the Escape Hatch in the New Mortgage Rules

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