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Washington Passes On More Lender Regulation

By
Real Estate Agent with Buyers Brokers Only, LLC

It's usually best when the government does less.

That's exactly what the politicians and bureaucrats in Washington have decided relative to the rise in foreclosures over the past year, the Boston Herald reported June 7, 2007.

"It would be a mistake to overreact to a market that is already showing signs of self-correcting at a time when little evidence has emerged that the broader economy is at risk, according to regulators and some lawmakers. They also note that consumer spending remains solid, the nation’s jobless rate is still low, and stock indexes have hit record highs in reaction to strong corporate profits."

Consumer advocates want changes in lending laws to protect borrowers. Federal Reserve Chairman Ben Bernanke believes "... we must tread carefully so as not to suppress responsible lending or eliminate refinancing opportunities for subprime borrowers."

According to the mortgage brokers I have spoken with recently, lenders have tightened lending rules on their own, especially for those seeking 100 percent financing.

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Comments (3)

Leo Namiot - LeoLends.com
Canopy Mortgage - Leo Namiot - Saint Augustine, FL
More than just great rates
Yes lenders have tightened the guidelines and it's getting very hard to get anyone 100% under a 620 FICO these days. There still are some outlets but very few and usually require a good 12 month recent history. I don't think it's a bad thing at all, the people getting 100% financing 1 day out of BK and a FICO of 540 never should have been able to qualify in the first place.
Jun 20, 2007 06:40 AM
Tom Engelhardt
First Choice Mortgage - Ocala, FL
I totally agree with Leo on this one. It's also refreshing to see the gov. keep their nose out for once!
Jun 20, 2007 07:20 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
There are programs for those that do not have the proper credit....it is call work and wait your turn will come.  We do have some specific financial programs to assist buyers that have meet minimum income requirements.  Very timely post.
Jun 20, 2007 12:39 PM