From the "You're Not Going to Believe This?" Department

By
Mortgage and Lending with Fairway Independent Mortgage Corp.
The next chapter in our government's surreal efforts to redo (fix) the mortgage industry has just been written; there is a new home loan refinance bill that has just been introduced by U.S. Rep. Dennis Cardozo (D - CA). The bill (HR 6218) is titled The Housing Opportunity and Mortgage Equity (HOME) Act --- maybe it should be called; The ReFi's for Everybody Act! The bill would make all loans backed by US Government Agencies (FannieMae, FreddieMac, FHA and VA) subject to be refinanced into new 30 Year Fixed Rate Loans at prevailing market rates (currently around 4.250%) on the basis of the following loan program guidelines and underwriting requirements: Stated Income --- No Documentation Stated Asset --- No Verification Stated Value --- No Appraisal Stated Credit --- No Credit Report This would probably encompass around 50 million loans and could possibly be viewed as the greatest SUB-PRIME loan program of all time. I mean, come on guys, haven't you been trying to outlaw "liar-loans and no-doc loans" for the past several years? We now have a Democratic Congressman, from a state (California) with an unbelievable and apparently unmanageable budget deficit, introducing a bill to take us back to the very mortgage financing environmant that, according to Congress, succeeded in bringing us to the brink of financial ruin. I'm not kidding, I'm being serious; this is NOT a joke, this is for real! I just don't get it? Am I missing something? What do you guys think?

Comments (3)

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

These proposals remind me of an option at many pizza places, half baked.  The proposal is obviously a political bandstand that has only the attention to buy some votes.  The details, who cares?  Not gonna happen.

Oct 01, 2010 04:07 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

This bill has just gone to committee.  Chances of it making it out of committee are probably quite low.  Oh and since Cardoza is running for reelection in a state with among the highest foreclosures in the nation proposing this bill is smooth move....yes I'm a synic.

Oct 01, 2010 09:58 AM
Anonymous
Need A. Home Bailout

like the banks deserved the bail out they got? This bill would provide many of the victims the the worlds largest ponzi scheme a chance. The banks got 100% payout for AIG, and have had one of the most profitable years in banking history thanks to the very same people who you now say dont deserve a good loan? Shame on you... try some compassion for once. What the banking and finance sector has done to the american economy is criminal. 

Oct 02, 2010 06:32 AM
#3