New MN lending laws and stated income loans

By
Mortgage and Lending with Cherry Creek Mortgage

It certainly has been an interesting year so far in the mortgage industry.  A slowing mortgage market, blistering commentary on a daily basis from the nation's press, a dramatic increase in foreclosures, restrictive new guidelines from lenders, and rising interest rates.  Whew.  Oh yeah I almost forgot that Minnesota introduced one of the most restrictive lending environment's in the nation with it's new predatory lending law. 

Stated income would be greatly restricted under the new lending laws.  State income loans directly affect self-employed, commissioned, and it can also affect individuals with big bonuses.  There are a lot of high net worth individuals that use stated income loans to qualify for their mortgages.

 

 The one thing that has struck a nerve with me regarding the new legislation is that it creates a greatly unbalanced playing field in that state and federally chartered banks can originate stated income loans while brokers and correspondent lenders would be shut out on these types of loans.  Well I am happy to state that Cherry Creek Mortgage will continue to offer the stated income loans that are needed in the market place in the same responsible manner in which it has also offered them.  We will be offering these loans while still compiling with the laws recently enacted. 

 

Obviously we are excited because that levels out the playing field for us.  If you have any questions would like to learn more about how we can help you and your business please feel free to contact me at 952-252-0340.

Comments (3)

John Barry Seattle Washington Home Loans
Home Loans - Kirkland, WA

I got an overview of what is going on in your state. I think you will see more stricter lending laws enacted very soon as the sub prime mess still floats to the top. Banks and mortgage brokers combined will see new laws coming into effect.

 

 

Jun 14, 2007 08:33 AM
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro
David--Nice first post! It will be interesting to see what happens with the new MN lending laws. Welcome to Active Rain!
Jun 14, 2007 09:55 AM
Ryan Trask
3plains - Shakopee, MN
It's a shocker that Minnesota doesn't want to help Self-Employed businesses...
Jan 24, 2008 07:11 PM