A lot has been said about the detrimental effects of HR3915 and Title 3 , but this post by Matthew Graham sums it up best. HR3915 and Title 3
For the most part the market has taken care of the problem. The "bad" loans have gone away and a lot of the "bad" actors are out of the business. But, do we really need the "State" to limit our choice of what type of loan we should be able to place on our own home? We already have enough laws on the books to put the bad guys away. Do we really need the Govt. to make it even harder and more expensive to get financing?
Mr. Graham proposes something really radical. Make people read their contracts or be accountable for not doing so. He proposes, and I agree, that a simple 1 page summary explaining the terms of the loan would help eliminate much of the confusion. While he states that it should be presented at closing, I propose that it should be part of the GFE, and be required to be sent out within 3 days of any proposed changes. Just a simple summary of terms.
What are your thoughts?
- Do we need to revamp the system?
- Is the market taking care of itself?
- To what degree do we (the State) need to protect us from ourselves?
Contact Your Congressman
SIGN THE PETITION
Larry Morris is a Certified Mortgage Planning Specialist in Portland, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans, Oregon VA Loans and conforming purchase and refinances in the states of Oregon, Washington and Idaho.
He can be reached at 503-421-0096.
Good point David. That's why I bracketed "Bad" Loans. In and of themselves, the product wasn't flawed. It was how many in our ranks used them, and the allowable YSP. There is no reason that someone should make 8% on a loan before it triggers High Cost.
Part of what Govt. is doing is pushing the blame on us for the hole that they have allowed the industry to get in. If tighter caps had been put in place then a lot of this never would have happened. I'm all for the 5% High Cost cap. I do however believe that they could be exceptions, but there had better be a good explanation and it truly be in the borrowers best interest.