alexgaddis Posted August 1, 2007 Author Share Posted August 1, 2007 Due to Current market conditions the following changes are effective immediately: All Expanded Criteria Products - No New Registrations and No New Locks All Non Conforming Products - Allowing registration and locks on Full documentation only. All Stated income options including Home Quick are not allowed. All Second Mortgages – Allowing registrations and locks on Piggyback, Full Documentation, CLTV <= 90%, FICO > 700. All standalone and stated options are not allowed. Payment Option Arm - No New Registrations and No New Locks As you have seen today from our competition, they have taken similar actions. We will follow up with more detail soon. more to come! anyone hiring in Minnesota? I might need a new line of work... Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted August 1, 2007 Share Posted August 1, 2007 more to come! anyone hiring in Minnesota? I might need a new line of work... are u good with cats, mice and dangerous chemicals Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 1, 2007 Author Share Posted August 1, 2007 are u good with cats, mice and dangerous chemicals In a cliaz sort of way? Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 1, 2007 Share Posted August 1, 2007 sure there were shady mortgage guys and slogans, but once again this boils down to the consumer. people were stupid and greedy. if you didnt read the details and look at the possible risk of your payments going up, oh friggin well. and people had to have the big house....had to keep up with the jones. they had to get the lowest payment now with no care about the future. well, now its biting them in the ass and the govt has to come in and make new regulations to help dumb people. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted August 1, 2007 Share Posted August 1, 2007 sure there were shady mortgage guys and slogans, but once again this boils down to the consumer. people were stupid and greedy. if you didnt read the details and look at the possible risk of your payments going up, oh friggin well. and people had to have the big house....had to keep up with the jones. they had to get the lowest payment now with no care about the future. well, now its biting them in the ass and the govt has to come in and make new regulations to help dumb people. I agree with you in large measure. There are a bunch of cases here in Minneapolis though where the broker just made chit up then pulled the wool over the client's eyes. If ability on the part of a purchaser to read and understand all the fine print in mortgage papers is a prerequisite to being able to buy a house, the market is doomed anyway - there won't be enough of them. Also, clients are not averse to flat out lying either. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted August 1, 2007 Share Posted August 1, 2007 I've got this crazy idea. I mentioned it once before in a thread about personal bankruptcy. Companies should take responsibility for loaning money to people who can't pay them back. Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 1, 2007 Share Posted August 1, 2007 The new law regarding mortgage lending comes into effect tomorrow morning in Minnesota...they have basically gotten rid of the "stated" income loans...going to be much harder for people to refinance and buy new homes for a while... What bothers me most is that self-employed people looking to purchase are the ones who will get hurt the most...I understand the need to get rid of "stating" income for someone with W-2's but thanks to the legislature all the lenders are removing the stated options as of tomorrow... Link? Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 1, 2007 Author Share Posted August 1, 2007 Link? let me try to find the new legislation somewhere...hang on... Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 1, 2007 Share Posted August 1, 2007 let me try to find the new legislation somewhere...hang on... I looked but could not find anything specific. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 1, 2007 Author Share Posted August 1, 2007 I looked but could not find anything specific. I cannot find a link, but here's the wording "Clause 23 prohibits the making, providing or arranging for a residential mortgage loan without verifying the borrower's reasonable ability to pay the scheduled payments including the pricipal, interest, taxes, insurance, assessments and mortgage insurance premiums. For variable rate loans, ability to pay is determined on a fully indexed rate and repayment schedule that fully amortizes the loan over the life of the loan. Does not prohibit a lender from relying on criteria other than the borrower's income and financial resources, as long as it is reliable and documented." I know, seems very harmless...but every lender in Minnesota has gotten rid of all stated programs as of today... Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted August 1, 2007 Share Posted August 1, 2007 I cannot find a link, but here's the wording "Clause 23 prohibits the making, providing or arranging for a residential mortgage loan without verifying the borrower's reasonable ability to pay the scheduled payments including the pricipal, interest, taxes, insurance, assessments and mortgage insurance premiums. For variable rate loans, ability to pay is determined on a fully indexed rate and repayment schedule that fully amortizes the loan over the life of the loan. Does not prohibit a lender from relying on criteria other than the borrower's income and financial resources, as long as it is reliable and documented." I know, seems very harmless...but every lender in Minnesota has gotten rid of all stated programs as of today... Wow. That would put a huge dent in our local business if we did not have access to stated products. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted August 1, 2007 Author Share Posted August 1, 2007 Wow. That would put a huge dent in our local business if we did not have access to stated products. The idea was to get rid of true "liars loans"...I have no problem with that...but now all the legal eggspurts that work for the lenders and steering clear of anything that isn't full doc... although a few still offer no doc, for those with 12 MONTHS reserves!... Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 2, 2007 Share Posted August 2, 2007 (edited) American Home Mortgage will close tomorrow according to Newsday-- BBerg -Update American Home Mortgage Investment Corp. will be closing its doors Friday, after several attempts to sell of all or some of its divisions to rival lenders went up in smoke this week, numerous employees said. Employees said they were contacted by senior management through the course of the day and told that none of their strategic options for remaining open had panned out. Just after 3 p.m., company founder Michael Strauss sent an email to employees saying, "American Home Mortgage has been forced to close." It said tomorrow would be their final day of employment. Employees expressed frustration with the secrecy of this week's process, and with upper management's decision not to disclose any information about the company's status until the bankruptcy was announced earlier today. Edited August 2, 2007 by dmarc117 Quote Link to comment Share on other sites More sharing options...
McNasty Posted August 2, 2007 Share Posted August 2, 2007 I've got this crazy idea. I mentioned it once before in a thread about personal bankruptcy. Companies should take responsibility for loaning money to people who can't pay them back. No, certainly not. Only the people stupid enough to take out the loans should be held accountable. The people stupid enough to lend that money out, knowing full well people would default, should still be bailed out by the gubment. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted August 3, 2007 Share Posted August 3, 2007 No, certainly not. Only the people stupid enough to take out the loans should be held accountable. The people stupid enough to lend that money out, knowing full well people would default, should still be bailed out by the gubment. You're probably right. Quote Link to comment Share on other sites More sharing options...
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