Mrcauser’s Weblog

Just another weblog

Sounds like Faschism to me……

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Washington took over our banks and gave them protection from their criminal and stupid behavior.

Now they are going to pay.

They won’t be able to fart with out Barney Frank there to smell it.
Serve them right for climbing in bed with the Oba mama gang.

Wait until you see the “new” auto industry. Every single thing will have to be vetted by the President.

We’ll have to be ”politically correct” to participate. I guess right now you have to be part of the Oba mama gang. Next election cycle, fixed by Acorn, maybe Hillary. Then what?

Hillary’s daughter? She does work for an hedge fund.

What advice do we give our grandchildren about their future under fascist regimes?

Learn Mandarin Chinese. Your going to need it.

Bill would fundamentally reform home mortgage industry – Los Angeles Times

* Ban all fees paid to loan officers that are tied to the interest rate of the mortgage or the type of the loan. During the headiest years of the boom, Wall Street investment banks paid mortgage brokers higher fees if they originated exotic loans such as short-term subprime adjustable-rate, interest-only, payment-option and “stated income” no-documentation loans with minimal or no down payments.

The lending industry also routinely paid brokers higher fees for originating mortgages that carried rates above prevailing levels. Loan officers frequently steered applicants with marginal credit histories into loans with excessive rates and penalties — and were paid extra by banks and Wall Street for doing so. Studies have documented that minority and first-time borrowers disproportionately were marketed loans with unnecessarily high fees and penalties, based on their credit scores.

The new bill would prohibit any compensation — “direct or indirect” — that is tied to the rate or terms of the mortgage. “There should be no way you can be compensated for steering anyone to a higher rate,” Frank said in an interview. The bill does permit home buyers or refinancers to opt for a slightly higher note rate to finance closing costs.

* Create mandatory minimum national quality standards for all mortgages. The rules would encourage lenders to make fully documented 30-year, fixed-rate loans with prevailing market rates, as opposed to loans with higher-risk features such as adjustable payments and negative amortization. The bill would also impose a federal “duty of care” standard requiring loan officers to offer applicants terms and rates that are “appropriate” to their income and ability to repay. Refinancings would have to pass a “net tangible benefit” test demonstrating that the replacement loan is superior to the borrower’s current terms. Lenders would have to offer applicants the option to choose any loan without a prepayment penalty attached. Mandatory arbitration clauses in most mortgages would be banned.

* Allow borrowers who are put into mortgages that violate the new law to seek legal redress through cancellation of the loan contract, refund of all payments and fees and compensation for legal costs.

Written by mrcauser

April 6, 2009 at 6:45 pm

Posted in Uncategorized

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