Started The Day With A Real Buzz Kill

Good info, Wayne.  We shouldn't see an impact with MOST loans because if they are approved through automated underwriting (Fannie, Freddie, FHA, etc) then they're good to go regardless of debt ratios.  It will certainly eliminate some portfolio products, though (we lost our stated income product because of it).  As you said, private money should come into play and play a role going forward, as soon as they sort through the law.

I think that there will be some trending to in-house loan products for a bit. We have found in our area that the big banks are not king here, the credit unions have a lot of in house loan products that are more popular. We will see how it all shakes out in the first quarter. 

Sorry Wayne but I have started to use my own lenders and shied away from the "in house lenders" our companies recommend. I am not saying they are magic but I use a broker who does wonders and makes things happen. Write me off line if you want to hear more. Laws are laws but Broker Vs Lenders have more leverage.

My opinion.

Great post.

Thank you for the shout out Wayne. At the end of the day, there will be some adjustments, but it will be adjustments as usual. We ill still be able to get loans done that others may not be able to.

Wayne, I did read about this on George blog post a few days ago and it will be interesting to see if Wells Fargo can help many without using the Dodd/Frank CFBP guidelines for their in-house loans and to see how other Lenders differ.

Thanks for the update.

It's interesting to see what it will do to the market.  Many people years out of foreclosure and short sale can now qualify - for certain government backled loans.  I am wondering if this all has to do with the aging of their prior mistakes.

Wayne, a bit of a shake up in the mortgage lending business, in this case it looks like it might be a good thing or at least have a silver lining(s). 

Wayne it is sad but annoying that the people that screwed up the Banking System are the same one in Charge Fixing it...that is all I can say the "elder statesman from Massachusetts" Barney Frank to name one... That is like putting the fox in charge of the Hen-house..., Endre

Wayne, we are in a heavy VA market and buyers get 100% financing. I will interested to see how this affects them and haven't heard any horror stories yet.  There is still time. 

Hi Wayne, They will figure a way to do business, they always do. Change is inevitable and so are nay-sayers.

Wayne, this was an interesting post. I am all for much less government intervention in anything we do. Too much creeping communism in my opinion. The more free market economy, the better in my book.

Wayne, 

This new law is another example of government getting involved in something they have no vlue about what is happening. 

Wayne, good review and I am finding a number of the banks are creating their own portfolio loans to accomplish what now can not truly be done...

Hello Wayne,

Dodd-Frank - more evidence that Washington is clueless...as if more evidence is needed to prove that point. 

Wayne, I'll second what Ginny said about banks creating their own portfolio loans. Some banks here are making loans that otherwise wil not be made. 

Wayne:

Great post and observations. Utimately the only thing banks do as a business is loan money so they have to find ways to make that happen or close business.