Subprime mortgage rules to be upgraded

By
Services for Real Estate Pros

It was a week or so ago when the federal mortgage market regulators distributed a new set of rules for the subprime home loan segment. It was good news, proving that the government is taking the issue seriously. But we have to remember one thing, it was only for the federally regulated lenders. They only originate about 35% of all mortgages. What about the rest? The vast majority of action is handled by mortgage brokers and non-regulated lenders. Excluding them left a large void in the rather complex system.

Well, now we have the answer to that. The Conference of State Bank Supervisors announced just yesterday that it will release new guidance next week for mortgage lenders not regulated by the federal government. The new rules are expected to emulate the federal ones. For detailed discussion on them, click here. The lending industry as a whole is slowly being brought behind the same set of regulations, an entirely welcome development.

However, the process is still incomplete. And that is regrettable. So far only 27 states and the District of Columbia intend to implement the new rules. The others are sitting on the fence for one reason or another which severely weakens the effort. They haven't rejected the directive outright, either. So, they are still studying and debating it when the marketplace really could use a common approach to solve its problems.

 

Posted by

_______________________________________________________________________________

Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Nevada Clark County Las Vegas
Groups:
Subprime panel
Tags:
lender
mortgage
broker
home loan
subprime

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
158,245
Rita Gibbons
MacDoc Realty LLC - Fredericksburg, VA
The Gibbons Group

I'll be glad to see the mortgage brokers and lenders regulated and strict penalties imposed ... it's a shame what's happened to so many people who have lost their life savings!! 

I'm sure the lending institutes are lobbying against these regulations.  I'm keeping my eye on this situation.  Thanks for the post.

Jul 14, 2007 04:54 PM #1
Rainmaker
325,771
Esko Kiuru
Bethesda, MD

Rita,

This is a good start, but the regulators need to further streamline the governance of the whole industry.

Jul 14, 2007 05:03 PM #2
Rainmaker
114,494
Ken Spencer
Serendra Realty Group - Buckeye, AZ
for Verrado, Buckeye, Sundance

Having been in the loan business in my past life prior to getting into real estate, I would say there is still a ways to go to help the consumer out.

Ken

Jul 14, 2007 05:21 PM #3
Rainmaker
325,771
Esko Kiuru
Bethesda, MD

Ken,

At least the feds and the states are on the same page on this one.

Jul 16, 2007 04:38 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
325,771

Esko Kiuru

Ask me a question
*
*
*
*
Spam prevention

Additional Information