Comments on: What is H.R. 3915 Really About? http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/ Radical Transparency for The Real Estate and Mortgage Industrys Tue, 06 Jan 2009 14:14:56 +0000 http://wordpress.org/ By: The XBroker http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1638 The XBroker Tue, 13 Nov 2007 23:06:16 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1638 Solid points Mike...Off to read your post... Solid points Mike…Off to read your post…

]]> By: Mike Volpe http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1635 Mike Volpe Tue, 13 Nov 2007 17:28:17 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1635 Here is the problem with this bill. I found this article about the North Carolina bill which this is modeled on. First, so no one sues me. http://www.journalnow.com/servlet/Satellite?pagename=WSJ/MGArticle/WSJ_BasicArticle&c=MGArticle&cid=1173352684163&path=!localnews&s=1037645509099 "There is no specific definition about what exactly predatory lending entails, though most observers believe that the description applies when lenders take advantage of borrowers by charging high interest rates and consider only the value of a borrower’s assets, as opposed to what the borrower can afford to pay." Supreme Court Justice Brennan said this about pornography, "I don't know how to define pornography but I know it when I see it." Well, in mortgages if something isn't defined it ultimately only leads to more paperwork. In fact, here is another excerpt from the same article. "We should have more disclosure about the loan terms that people are signing on to … a one-page summary that every borrower sees explaining everything,” This is the crux of the problem. The politicians think every problem can be resolved with more paperwork to sign. In the real world, we know that this resolves nothing. This contributes to the problem. The politicians are trying to solve things they can't even define. Here is my most definitive piece on the matter. www.proprietornation.blogspot.com/2007/11/from-boon-to-crisis-truth-about.html Here is the problem with this bill. I found this article about the North Carolina bill which this is modeled on. First, so no one sues me.

http://www.journalnow.com/servlet/Satellite?pagename=WSJ/MGArticle/WSJ_BasicArticle&c=MGArticle&cid=1173352684163&path=!localnews&s=1037645509099

“There is no specific definition about what exactly predatory lending entails, though most observers believe that the description applies when lenders take advantage of borrowers by charging high interest rates and consider only the value of a borrower’s assets, as opposed to what the borrower can afford to pay.”

Supreme Court Justice Brennan said this about pornography,

“I don’t know how to define pornography but I know it when I see it.”

Well, in mortgages if something isn’t defined it ultimately only leads to more paperwork. In fact, here is another excerpt from the same article.

“We should have more disclosure about the loan terms that people are signing on to … a one-page summary that every borrower sees explaining everything,”

This is the crux of the problem. The politicians think every problem can be resolved with more paperwork to sign. In the real world, we know that this resolves nothing. This contributes to the problem. The politicians are trying to solve things they can’t even define.

Here is my most definitive piece on the matter.

http://www.proprietornation.blogspot.com/2007/11/from-boon-to-crisis-truth-about.html

]]> By: The XBroker http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1626 The XBroker Mon, 12 Nov 2007 16:53:02 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1626 Well, oneloanman, this is the way it was intended from the beginning...hopefully your premonition is true and if 3915 does pass, it becomes the rule rather than the exception.... Well, oneloanman, this is the way it was intended from the beginning…hopefully your premonition is true and if 3915 does pass, it becomes the rule rather than the exception….

]]> By: oneloanman http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1625 oneloanman Mon, 12 Nov 2007 09:37:54 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1625 What will happen in my opinion is that you (the broker) can still earn your YSP, however you will have to charge for it (disclose it) on your good faith estimate. It will be more difficult to hide. In other words YSP can only be used to pay for items listed (disclosed) on a HUD. Mark my words. What will happen in my opinion is that you (the broker) can still earn your YSP, however you will have to charge for it (disclose it) on your good faith estimate. It will be more difficult to hide. In other words YSP can only be used to pay for items listed (disclosed) on a HUD. Mark my words.

]]> By: The XBroker http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1623 The XBroker Sun, 11 Nov 2007 05:15:59 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1623 Brian...you are no 'pseudo' pundit...we know this. A few of us would certainly 'clean up' ;) Brian…you are no ‘pseudo’ pundit…we know this.

A few of us would certainly ‘clean up’ ;)

]]> By: Brian Brady http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1624 Brian Brady Sat, 10 Nov 2007 23:58:05 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1624 "I really need to read HR 3915 in its original format, minus the pseudo-pundit laced opinion…I’ll be back." I link to it in my pseudo-pundit opinion pieces on Bloodhound (and I've read it). Here's the funny part; I could clean up if this bill were passed. Negotiating, explaining, and being paid fees for my expertise has never been a problem for me. I just hope they allow the consumer to have the option to pay my fees through a higher rate. “I really need to read HR 3915 in its original format, minus the pseudo-pundit laced opinion…I’ll be back.”

I link to it in my pseudo-pundit opinion pieces on Bloodhound (and I’ve read it).

Here’s the funny part; I could clean up if this bill were passed. Negotiating, explaining, and being paid fees for my expertise has never been a problem for me. I just hope they allow the consumer to have the option to pay my fees through a higher rate.

]]> By: Chris Johnson http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1620 Chris Johnson Tue, 06 Nov 2007 21:23:45 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1620 Gosh. As a libertarian, I hate the "legislation solution" to every problem. The presumption that the government will come in and solve problems for us is never good, because it allowed the banks to operate and make risky loans knowing that their losses would be mitigated by the government. Made consumers have access to more credit (because the government would save their home). And now, big banks have decided to pin this on brokers to justify their bailout. "We didn't know that undertrained 24 year olds in California would not care about the quality of the loans they originated..." Gosh. As a libertarian, I hate the “legislation solution” to every problem. The presumption that the government will come in and solve problems for us is never good, because it allowed the banks to operate and make risky loans knowing that their losses would be mitigated by the government.

Made consumers have access to more credit (because the government would save their home).

And now, big banks have decided to pin this on brokers to justify their bailout. “We didn’t know that undertrained 24 year olds in California would not care about the quality of the loans they originated…”

]]> By: The XBroker http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1632 The XBroker Tue, 06 Nov 2007 19:29:25 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1632 Great points Mike...Just the type of comment I'm looking for. There are so many solid viewpoints on how to address this matter, I was hoping for robust engagement regarding this issue, such as yours, in this comment thread. Thx again... J- Great points Mike…Just the type of comment I’m looking for.

There are so many solid viewpoints on how to address this matter, I was hoping for robust engagement regarding this issue, such as yours, in this comment thread.

Thx again…

J-

]]> By: Mike Volpe http://thexbroker.com/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1619 Mike Volpe Tue, 06 Nov 2007 17:57:31 +0000 http://xbroker.realestatetomato.net/2007/11/02/endorse-no-on-hr-3915-petition/#comment-1619 It isn't enough to endorse no and sign a petition. We all must start to employ our clients the borrower and make them aware of the situation. Millions of borrowers received great loans because of the use of YSP. They don't realize it because that gets into technical things that they really weren't concerned with at the time. They just wanted the lowest possible rate and the lowest possible fees. Now, we must all educate them on how it worked and what Congress is trying to do, once the borrowers themselves revolt then critical mass will be reached. I encourage all mortgage brokers to get a hold of all their borrowers and let them know what is going on. It is a great way to make contact and you will be doing the most effective grass roots politicking. Here is how I saw the situation... www.proprietornation.blogspot.com/2007/11/congress-vs-mortgage-brokers.html It isn’t enough to endorse no and sign a petition. We all must start to employ our clients the borrower and make them aware of the situation. Millions of borrowers received great loans because of the use of YSP. They don’t realize it because that gets into technical things that they really weren’t concerned with at the time. They just wanted the lowest possible rate and the lowest possible fees. Now, we must all educate them on how it worked and what Congress is trying to do, once the borrowers themselves revolt then critical mass will be reached. I encourage all mortgage brokers to get a hold of all their borrowers and let them know what is going on. It is a great way to make contact and you will be doing the most effective grass roots politicking. Here is how I saw the situation…

http://www.proprietornation.blogspot.com/2007/11/congress-vs-mortgage-brokers.html

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