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Where Do Connecticut Congressmen Stand On 20% Mortgage Downpayment Proposal?

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

I wrote a blog on Tuesday about an e-mail I sent to Vice President, of Government Affairs, for the CT Association of Realtors, Tim Calnen. asking him the following question:

"Could you tell me on how I can find out how Connecticut Congressmen voted on the proposed Bill requiring a 20% down payment on new home purchases?"

Mr. Calnen, graciously responded back to me quickly and also clearified that this was not a Bill before Congress.  Mr Calnen pointed out that this is a:

"proposed "Regulation" of a bunch of Executive Branch Agencies (like HUD, the FDIC, Federal Reseve, etc) - - known as the "QRM Rule" - - (Qualified Residential Mortgage regulation)."  

He then went on to make the following statement:

"As proposed, these Regulatory Agencies have drafted the QRM Rule so strictly that it would require enormous downpayments, all in the name of shoring-up sound financial underwriting.  

Realtors have lobbied for safe and secure lending practices but still believe a variety of mortgage products should still be available, including down payment plans in the 5% to 20% range with PMI.

CT Conressmen Himes, Murphy, DeLauro, and Courtney have all signed a joint  letter to these Regulators espousing this view.  You should contact your Representative and asked him /her to bring you up-to-date."

After reading his responce it was still unclear to me as to the position of the three Connecticut Congressmen, so I followed up on this by contacting each of their offices.  All three offices did not recall the letter, and told me that they would get back to me.  Yesterday Congressman Himes office called me back and stated that they had the letter, and would forward it me.

 Below is part of what the letter contained:

I was glad to see that the three Congressmen agree that what is presently proposed would not be good for the economy, or the housing market, and feel that what is being proposed needs to be revised.  It will be interesting to see, what this proposal will end up looking.  I feel comfortable in saying that with all the objections that they have received to it, that it will not go into affect in its present form.  But that does not mean that we can relax, and assume that the final version will make since.  This issue needs to be monitored until a version of it makes sense for the Real Estate Industry, and future home purchases.

I did find it interesting that Connecticut Congressman John Larson, and Christopher Murphy did not sign the letter.  I wonder what their position is?

 

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
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I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments(4)

Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Wow, terrific follow up George.  Glad to see that there are some congressmen who are standing up for future homeowners!  Thanks for the update.

Jun 10, 2011 06:47 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, I'm just not quite sure how anyone would consider this a good thing to do now.  It sounds a little like a rebound effect...over correcting.

Jun 11, 2011 10:06 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- I admire your tenacity here.  Now that you have presented the facts, I wonder what Murphy and Larson think as well. I'm still really angry about that increase in seller conveyance.  I was scared the buyer conveyance might slip through as well, but it didn't.  It's been presented, though, and in their minds. It will return and that will kill the CT market.

Jun 11, 2011 02:57 PM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

George, Some of them, just need to retire:)  When they aren't paying attention to protecting the citizens interest, they just need to go.  The entire administration has been trying to recorrect the market for the last three years.  They obviously, don't see that it is not the way to go.

Jun 13, 2011 01:14 PM