Schwarzenegger Institutes Nine New Mortgage Laws

sugarspunZ_IHB

sugarspunZ_IHB

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<a href="http://www.dsnews.com/articles/schwarzenegger-institutes-nine-new-mortgage-laws-2009-10-13">http://www.dsnews.com/articles/schwarzenegger-institutes-nine-new-mortgage-laws-2009-10-13</a>



Gov. Arnold Schwarzenegger signed nine housing bills into law this week. One in particular, Senate Bill 94, consumer advocacy groups are calling a clear victory for California?s many troubled homeowners facing foreclosure...
 
IMHO limiting yps is only going to make things worse. I also can not see why NegAm loans need to be band. Its not the loans fault, its the lenders lose guidelines that need to change.
 
I just read SB94. It doesn't really pertain to banks - it attempts to ban loan mod firms from charging advance fees for their services. In my opinion, if it is effective, it will essentially shut down the loan mod industry and speed foreclosures.



What loan mod firm in their right mind would perform services on credit for a group of people with a track record of defaulting on their financial obligations?
 
[quote author="sugarspunZ" date=1255583967]IMHO limiting yps is only going to make things worse. I also can not see why NegAm loans need to be band. Its not the loans fault, its the lenders lose guidelines that need to change.</blockquote>


Here's why there should be a ban: the mere fact that you need an neg am loan to qualify says that you shouldn't qualify. It's called "home ownership" not becoming increasingly more in debt while you rent your house from the bank. Neg Am loans presume that the value of the home will increase, what a disaster that has been.
 
[quote author="tmare" date=1255587310][quote author="sugarspunZ" date=1255583967]IMHO limiting yps is only going to make things worse. I also can not see why NegAm loans need to be band. Its not the loans fault, its the lenders lose guidelines that need to change.</blockquote>


Here's why there should be a ban: the mere fact that you need an neg am loan to qualify says that you shouldn't qualify. It's called "home ownership" not becoming increasingly more in debt while you rent your house from the bank. Neg Am loans presume that the value of the home will increase, what a disaster that has been.</blockquote>
i still feel that the negam is a great product for the savvy investor/home owner. back in early 2003 and prior the loan was not what it was in 2005-06. you actually had to verify income, have good credit (min 680), stated income was for the self imployed and was verified with a business license or professional license, there was no cash out over 65%ltv, there was no CLTV, and max LTV was 80%. oh and you had to qualify on the fully indexed principal and interest payment. there was no qualifying on the min payment and there were no 3 to 4 point ysp's on negams pre 2004.
 
[quote author="sugarspunZ" date=1255588172][quote author="tmare" date=1255587310][quote author="sugarspunZ" date=1255583967]IMHO limiting yps is only going to make things worse. I also can not see why NegAm loans need to be band. Its not the loans fault, its the lenders lose guidelines that need to change.</blockquote>


Here's why there should be a ban: the mere fact that you need an neg am loan to qualify says that you shouldn't qualify. It's called "home ownership" not becoming increasingly more in debt while you rent your house from the bank. Neg Am loans presume that the value of the home will increase, what a disaster that has been.</blockquote>
i still feel that the negam is a great product for the savvy investor/home owner. back in early 2003 and prior the loan was not what it was in 2005-06. you actually had to verify income, have good credit (min 680), stated income was for the self imployed and was verified with a business license or professional license, there was no cash out over 65%ltv, there was no CLTV, and max LTV was 80%. oh and you had to qualify on the fully indexed principal and interest payment. there was no qualifying on the min payment and there were no 3 to 4 point ysp's on negams pre 2004.</blockquote>


100% agreed. NegAm loans have their place, albeit small, but if a stupid bank is willing to lend one to a stupid borrower - let them both fail. We are big boys and girls.
 
[quote author="matt138" date=1255592971]We are big boys and girls.</blockquote> You would think so... History points a different direction.
 
[quote author="matt138" date=1255592971]We are big boys and girls.</blockquote>


I know you have never worked for a bank, but it's really obvious here. There is a reason they need to be highly regulated - just like a 3 year old. Most borrowers are also of the 3 year old mentality.



They (bankers, borrowers) really need to be saved from themselves.
 
[quote author="no_vaseline" date=1255639767][quote author="matt138" date=1255592971]We are big boys and girls.</blockquote>


I know you have never worked for a bank, but it's really obvious here. There is a reason they need to be highly regulated - just like a 3 year old. Most borrowers are also of the 3 year old mentality.



They (bankers, borrowers) really need to be saved from themselves.</blockquote>
Blind leading the blind.
 
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