Tuesday, December 18, 2007

New FED proposal-New Mortgage Protections? They should have thought of that before the bloodbath

New FED proposal-New Mortgage Protections? They should have thought of that before the bloodbath.

I just read this article on Yahoo news >>Fed proposes new mortgage protections. I don't see anything positive about it other than someone trying to think of a new way to save the butts.
They talk about yet another new proposal of new protections for high-cost mortgage borrowers to avoid a repeat of the loose lending standards that have put many Americans at risk of losing their homes.
They also mention that this so called proposal that U.S. lenders would determine if borrowers can really afford a mortgage before making the loan and would also want borrowers to get details on their brokers' compensation as well as they would be billed on a monthly basis for annual charges property tax and insurance. Come on...is the consumer that stupid?

My question is how come they didn't think of this before? Because of unfair lending practices and false calculations many consumers were misled and it really is shame that it has to come to this. As far as reporting their brokers compensation...that isn't the important factor. The important factor is common sense. How can someone be approved for a mortgage without figuring out their debt to income ratio? Or even a simple credit check to determine that if the consumer can't even pay their $50 cell phone bill on time. How in the world can they possible afford the loan payments?

I want a solution...we want a solution. But how can this be a solution? Just another way to say that some people screwed up. If they want a real solution then start by lowering rates by a significant number and relieve any consumer who was sucked into going with an adjustable teaser rate that could rise to as high as 13%. How about lowering property taxes and insurance premiums? How about doing re-evaluations of peoples present debt to income ratios and set up a program for that?

I understand they are trying to find the right solution but I personally think it's just another band-aid to cover a wound that is still bleeding profusely. The blood bath is certainly not over.....and they really need to find a better solution. Let's forget who's fault it is. It everyones fault....the lenders,the title companies,the Realtors®...and even the consumers.
How much longer do the people losing their homes have to wait.

Neal Bloom/Remax Homtown
2500 Weston Road ,Suite 103
Weston FL 33331
The Real Deal tells it Like it is in Real Estate-copyright © 2007-All rights reserved


dabydoll said...

Hello Neal, Why didn't they do something before is a darned good question! I think everyone was riding the wave of a good economy on a wing and a prayer! Good economy? Man, we'll believe anything!

I will say this. It may be too little too late for most but the Lenders are truly working on a plan.

I just became licensed as a Loss Mitigation Consultant. I will be consulting with homeowners to help them save their homes. There are several different ways to work it and nothing is guaranteed. But, at least I'm going to try to help and if I save one or two families from having to lose their homes it will be worth it.

I thoroughly enjoyed your blog. You hit the nail right on the head! Debra A Brooks, Texas Waterfront Specialist, Realtor,LMC

Nealb63 said...

Thanks for stopping by and reading my blog. I'm glad you are going to do something that I'm sure will help other people. Happy Holidays!