This article goes over some important facts about government regulations that will not only cripple the real estate industry but hurt a lot of lower income and middle class families. If American’s knew a fraction of what our politicians (DEMS, GOP and Obama) are really doing with all these regulations there would be riots in the streets. I hope everyone takes the time to read this and get educated.
New mortgage regulations will squeeze working-class buyers
“Regulations that go into effect Jan. 1, 2014, prohibit banks from approving mortgages for anyone whose debt-to-income ratio is higher than 43 percent.
Banks also will have to limit the fees for originating mortgages to no more than 3 percent of the loan amount, which could discourage many institutions from pursuing loans for lower-priced houses.
“It will hurt working-class families buying homes for $75,000 or less,” he said. “Those loans will be classified as a high-cost loan. You are going to lose people in the mortgage industry looking at that segment. That's what we think will happen. Banks will make a better spread on higher-priced homes.”
Don Frommeyer, president of the National Association of Mortgage Brokers, said the 3 percent rule also will be a problem for mortgage brokers.”
The problem is that we keep on voting in these morons that have no experience running a business or understand what the long term effect is of the legislation they vote on. When they regulated the mortgage industry a couple years ago it caused many lower income families to not be able to get into their first home. NAR (National Association of Realtors) reports that as many as 25% (or more) of the mortgage loans are having problems because the government over regulated the appraisal industry.
NAHB (National Association of Home Builders) policy expert Jessica Lynch talks about the uncertainty regarding mortgage lending requirements and proposed regulations continue to harm the housing recovery.
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