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NAR AND QRM

By
Mortgage and Lending with Amerifirst Financial Inc.

In case anyone has not seen these yet here is a copy of the bipartisan letter that spoke to regulators about the effects of QRM and the housing industry. There has been some serious railing on the NAR over how they are handling the upcoming QRM regulations. It's not just the 20% down issue that is the problem. They know this. From my own personal experience and I have had a few over the last 2 month when speaking with the lobbyist's from the NAR they are concerned about this whole package and this is not the only piece of regulation coming. There are more. A lot of them don't connect with the last regulation which will cause confusion and a tightening of credit. I am trying not to sound like a zealot here but there is a BIG picture that needs to be looked at and the 20% down is one small part of this.

The signitures are possibly your reprsentatives activily trying to help our industry by having the regulation but not the way it is written now. If you would like to see the policy being debated over on QRM please go to http://www.regulations.gov/#!submitComment;D=OCC-2011-0002-0001 . It is there in it's entirety and while there are good things about it there are also something that are just to restrictive for the housing markets right now.

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Show All Comments Sort:
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

Jennifer, the TBTF's want the QRM Regs as written. Why in the world would a lender want to assume risk by loaning money that may or may not be paid ? Heck, it's more profitable to go to the fed discount window, borrow at almost 0.0%. Then, turn around and by treasury's at 2-3.5% with NO RISK. Nice profit!! You can't slap the smile off the TBTF CEO's faces. Shareholders happy, bonus paid to big dogs, fed can monetize debt, congress can spend like drunk sailors on shore leave, all is right with the world.We as agents forget that the #1 mission for a bank is to keep the shareholders happy. Not make mortgage loans. 

And here you go trying to upset the ponzi. You'll be on the bus with me to the "re-education camp". 

Jun 24, 2011 05:02 PM
John Pusa
Glendale, CA

Jennifer - Excellent information and tips on NAR and QRM. Thank you for the detailed quality blog.

Jun 24, 2011 05:12 PM
Anonymous
Jennifer Uranga

Mike- This would be true. Call me crazy then but I am looking at a housing market that is just starting to think about coming back and a week job market. I would prefer to go the route of arguing my case and fighting for my communities than sitting by. I will end up on the bus with you no doubt!

Jun 25, 2011 08:25 AM
#3
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

Jennifer, please continue these VERY thoughtful posts. I'm not trying to be pessimistic, just thinking like a politician or a bankster. These folks would crush a hundred baby heads just to make a buck. Look at what they have done to our active duty military personnel.

Jun 25, 2011 12:46 PM
Anonymous
Jennifer

Mike,

I will continue to write on this. The important thing for everyone to do in this industry is comment on the regulation. The comment period did get extended from the original cut off in June to August. If you have not commented on the effects of this regulation yet please use this link and comment now. QRM the way it is written is extremely dangerous to many housing markets and they should know that the idea is good but closing out second homes and investment properties is like shooting themselves in the foot when it comes to improving the market.

 

http://www.regulations.gov/#!documentDetail;D=HUD-2011-0056-0001

Jun 27, 2011 04:33 AM
#5