These has been lots of talk and press yesterday and today about our famous Governor signing a package of mortgage related bills into law.  Some of the key components to these laws is pro­hibiting loan officers from "steering" people into higher priced loan program (the higher priced or sub-prime loans have not been available for over 3 years), outlawing negative amortizing loan programs (these programs have also not been available for several years), limiting pre-payment penalties to 2% of the loan amount (pre-payment penalties do not exist on any govern­ment or conventional loan anymore), and a few other cleanup type laws. 

 How Does This Affect Us As Agents ?

  I remember reading several years ago how many millions of dollars it takes to push legislation through the government and make them actual laws.  These new lending laws are a case of clos­ing the barn door after the animals have left.  The lending industry, as we all know, has taken care of most of the problems of the past.  As of right now no one sees a return to the crazy 100% stated income purchase loans that were available several years ago.  Lending guidelines are tough and will probably stay that way for quite a while.