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The Solution to HR3915

A lot has been said about the detrimental effects of HR3915 and Title 3 , but this post by Matthew Graham sums it up best. HR3915 and Title 3

For the most part the market has taken care of the problem. The "bad" loans have gone away and a lot of the "bad" actors are out of the business. But, do we really need the "State" to limit our choice of what type of loan we should be able to place on our own home? We already have enough laws on the books to put the bad guys away. Do we really need the Govt. to make it even harder and more expensive to get financing?

Mr. Graham proposes something really radical. Make people read their contracts or be accountable for not doing so. He proposes, and I agree, that a simple 1 page summary explaining the terms of the loan would help eliminate much of the confusion. While he states that it should be presented at closing, I propose that it should be part of the GFE, and be required to be sent out within 3 days of any proposed changes. Just a simple summary of terms.

What are your thoughts?

Do we need to revamp the system?
Is the market taking care of itself?
To what degree do we (the State) need to protect us from ourselves?

Contact Your Congressman

SIGN THE PETITION

Posted by Larry Morris, Oregon Mortgages on 11/20/2007 12:06 PM

Comments (6)

hr3915

Originally posted at: Oregon Mortgage News: The Solution to HR3915

This post has been included in Oregon Information

6 Comments on The Solution to HR3915

NOV

2007

I agree. As an appraiser we are supposed to create results that are credible and not misleading. Anyone above an 8th grade reading level should be able to pick up a report and make sense of it.

Hmmm. I'm always afraid to have a client see the appraisal prior to funding as I know that they will misinterpret the findings. They don't understand "bracketing" and will almost always disagree with some of the findings. Maybe we need a simple 1 page summary as well for appraisals...

there were no bad loans... only borrowers in the wrong loans because of bad lenders offering bigger commissions to the greedy ones out there in our ranks

Good point David. That's why I bracketed "Bad" Loans. In and of themselves, the product wasn't flawed. It was how many in our ranks used them, and the allowable YSP. There is no reason that someone should make 8% on a loan before it triggers High Cost.

Part of what Govt. is doing is pushing the blame on us for the hole that they have allowed the industry to get in. If tighter caps had been put in place then a lot of this never would have happened. I'm all for the 5% High Cost cap. I do however believe that they could be exceptions, but there had better be a good explanation and it truly be in the borrowers best interest.

DEC

2007

Sorry, Larry, that I have not yet had a chance to get to reading your great posts. Last week was busy with writing the MORTGAGE PRO week in Review. Thanksgiving the weak prior...excuses, excuses! This is a great post. Personally, I do not think that the state needs to be involved at all. Generally speaking, there is an old saying..."Let the buyer beware!" Can we get any lazier than to ask the government to patrol yet another area? Can we say tax hikes. Do not even get me started! Anyway, Merry Christmas!!!!:)

THanks Sarah

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