Stealing and changing the title a bit from the Britney Spears "hit" song whenever it came out was inspired by HUD's latest announcement that it is considering "Civil Money Penalties" against the FHA underwriter if HUD FEELS (I emphasize the word FEELS) the underwriter didn't underwrite the loan properly. HUH?
I wonder if Britney Spears is now in charge of HUD. Nope it is Housing Secretary Shaun Donovan the man on an island along
with the rest of Washington DC. Does anybody really believe our government and its agencies know anything?
Timothy Geitner Treasury Secretary recently stated "regulatory overhaul without limiting consumer choice of financial products or stifling competition" was the focus.
Yet Mr. Donovan of HUD (or somebody inside the HUD house) comes up with a bizarre plan to force an individual to pay financial consequences if HUD sees fit to go after them? ARE YOU KIDDING ME?
Read the HUD guidebook also known in the industry as the "4155". By design it is written to allow an underwriter to be subjective ....why? Because not everyone is the same, can document the same and have special circumstances. This is what we call risk analysis so if Mr. Donovan has his way the consumer will live the perfect life - nothing bad happens and even if you are that perfect consumer there is no guarantee HUD would not come after the underwriter for some minutia and be fined because some 22 year old bureaucrat is ‘following' the rules. You can bet the cost of your home loan will go up because now the underwriter will have to be insured for error and or omission insurance.
It is unbelievable that such an idea is even put into the public for discussion. WHO are these people and WHERE do they come from and HOW the hell do they get this job and WHAT are their credentials?
The "stupid" continues and I continue to write my representation in DC only to get back some template non-response response stating they hope all is well in Snohomish ....it's not well anywhere and the government IS the reason. They are not addressing the issues...the lobbyists are winning.... This is not a Democrat or Republican thing this is our government and America I hope you contact your representative.
I wish us all well.
The American Public not so smart says HUD & Washington DC....
NO...Real Estate Market is NOT improving just limping along...
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