Upside Down Mortgage

Archive for September, 2009

Anti Predatory Lending Policy

Finally, a reform bill that puts the responsibility where it belongs - back in the lap of the lender. By toughening some of the old rules, and adding rules that should have been there in the first place, this bill makes the lender more accountable when it comes to negotiating a mortage.

The ominous sounding "Mortgage Reform and Anti-Predatory Lending Act of 2009" introduced by the House Services Committee is moving ahead after a successful 45-19 vote. It still needs be cleared by Senate and signed by the president before being enforced.

If it seems that this bill is moving quickly, it is. Over 2 million subprime mortgages are expected to reset to higher interest rates in the next 18 months, and this reform will be part of the action implemented to reduce the resulting national fallout.

Here are some of the highlights of this bill:

Licensing for mortgage brokers and bank loan officers will become standard.

Previously, larger incentives were paid out to mortgage brokers for securing higher rate or higher risk mortgages; with the new bill, no incentives can be attached to the interest rate or type of mortgage.

Mandatory quality control for mortgages on a national level will be enforced. Standard rules will include encouraging lenders to provide long term, fixed-rate loans with consistent market rates, instead of low interest introductory rates or negative amortization. It will also hold lenders accountable to find terms and rates that are appropriate for the individual borrowers and their ability to repay. Lenders will also be required to offer the option to choose a loan without a prepayment penalty. Mandatory arbitration clauses in most mortgages will also be removed.

If a borrower's rights were not considered according to the rules of this policy, they would be eligible to cancel their loan contract and receive a refund of all payments, fees and legal costs. If a borrower committed fraud or was untruthful about their situation when applying for a loan, they would not be eligible for the same recourse.

Lenders offering anything other than a 30-year fixed-rate loan, is required to maintain a minimum 5% investment in the loan until it is paid off. If it goes into default, they would own part of the loss. Today, lenders simply sell off the loans and walk away. The intention here is to discourage fly-by-night lenders or those offering low introductory rate sales or promotions to entice buyers. Many believe this will put a strain on the smaller mortgage companies, having to set aside securities to cover any potential losses.

Anyone considering refinancing will have to pass a "net tangible benefit" test that indicates that the borrower will be better off financially with the new loan.

Stay tuned for more details. In the meantime, watch for the latest "Credit Card Reform Bill that recently squeaked through the U.S. Senate Banking Committ on a 12 to 11 vote. Although many believe this is an area in dire need of reform, there is the question that it will make it even harder for the average consumer to get credit approval.

About the Author:

Visit LeslieEskildsen.com for all your Orange County real estate needs. Compare the market in surrounding areas including real estate in Mission Viejo.

Source - Spring Ahead With the 2009 Mortgage Reform Bill

DOUCHE BAG LIAR MCCAIN ON FOREIGN POLICY

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Subprime Borrowers

Question: How do you feel about people being racist? Do you think it should matter?

The study show that black borrowers are 3.9 times as likely to end up with a refinance loan from a high-cost "subprime" lender than whites, while hispanics are 1.6 times likely, even after factoring out income and the loan income ratio.

Answer: There are TONS of options for refinance loans. A lot of people who end up settling and dealing with predatory lenders do it because they are uneducated and being taken advantage of.

Don't blame racism for everything. People need to do their homework and get informed when it comes to home loans.

Subprime Borrowers

Subprime Mortgage Lenders Canada

If you are looking online to find mortgage insurance quote Toronto, this is the best decision you could have made. A good mortgage insurance quote is easy to find when you go online. Educate yourself before you get strong-armed into a collective mortgage insurance policy through your bank or lending institution.

There are two ways to get a mortgage insurance quote in Toronto. Collective (or group) mortgage insurance policies are issued by the bank or lending institution. Private mortgage insurance policies are issued by an insurance broker.

According to Canadian law, the mortgage insurance must be offered before closing the deal by the mortgage broker. If the loan is over 80% of the market value, the borrower is required to carry a policy. There is an added bonus for borrowers when they purchase mortgage insurance, because they may qualify for a loan up to 95% of the house value.

The Canadian housing market is strong and secure largely due to Canadian laws that protect the economy from subprime fiascos like the one in the US. In fact, subprime mortgages makeup only 5% of the loans in Canada.

The Canadian government backs private mortgage insurance so they may compete competitively with the Canada Mortgage and Housing Corporation (CMHC). As of yet, there are no laws requiring that CMHC or any other collective or group insurance offered by the mortgage broker meet any requirements or disclosures.

On the other hand, private mortgage insurance is handled by a licensed agent that discloses and reviews all paperwork upfront, so there are no surprises or denials in claims. The policy is in the borrower's name rather than the lender's, which puts the consumer at an advantage.

More Canadian citizens are turning to the Internet to find a mortgage insurance quote in Toronto because they offer a no-pressure, inexpensive way to protect your investment.

About the Author:

what you just learned about mortgage insurance quote toronto is just the begining. To get the full story and all the details, check us out at infoprimes

Source - The Truth behind Your Mortgage Insurance Quote in Toronto

THE OBAMA DECEPTION - Pt. 3/12