Mortgages tougher to get in 2014?

Discussion in 'Too Hot for Swamp Gas' started by gatordowneast, Nov 11, 2013.

  1. Gatormb
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    Gatormb Well-Known Member

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    Some good points above. What's sad is the little guy gets hurt with reduced compensation because you can't make any money on small loans. No longer being able to contribute to the buyers closing costs will also hurt many ( I do on over 50% of my gov loans saving thousands in cash to close).

    There will be a new 3% max fee which includes "lenders admin" fees. Lenders will not eat those fees just adjust pricing upward to cover so it will raise rates slightly. BTW the up to 3% fee is NOT paid by the borrower but by the lender. I'm talking about 0 point loans.

    It will also be a job killer because the new rule states if there is any business arrangement {say between a lender and title company} the 3% mortgage max must also take into consideration all title fees.

    Even though I own no part of my wife's title company (who is very competitive) I can no longer refer her any business w/o cutting my fees because we "eat at the same table". So we have two options, get divorced or sell the business if I want to send her business.

    The real killer is already in effect. You must earn the same % fee be it an $80,000 loan or $400,000 loan unless you go borrower paid. BS.
  2. ThePlayer
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    ThePlayer VIP Member

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    Liberals want the truth?
    They can't handle the truth.

    The very groups you claim to help by this misguided legislation will find it harder to get a loan.
    The vast majority were left out when Dodd-Frank cut the backend debt ratio for qualifying to 50%.
    Now the CFPB plans to cut that to 43%.

    Good luck in your isolated world of stupidity.
    We'll soon be a nation of renters.
  3. oragator1
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    oragator1 Premium Member

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    Yep, because giving those people loans through high ltv or low/no verification, or neg am etc worked so well - It was the working class homeowners who got destroyed in 2005-2009 more than any other group. Most would have been far better off never owning a home, these laws are trying to prevent a repeat.
  4. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Not what I... never mind.

    It's a bad law that will hurt Obama's base voters worse that any Pubs base voters. That much is for sure.

    This is another law that needs to be flushed along with Obama-scam/extortion/tax.
  5. VAg8r1
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    VAg8r1 Well-Known Member

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    For what it's worth, it is already tougher to qualify for a mortgage than it was during the housing bubble. Personally, I do not consider more rigorous requirements necessarily a bad thing since lending to borrowers who should have never qualified for mortgages was responsible for destroying the US economy although a numbers of lenders, home builders, realtors and investment bankers literally made out like bandits before the bubble burst.

    While this is strictly anecdotal, based on personal experience, I can state unequivocally that the process of qualifying for a loan is considerably more rigorous than it was during the housing bubble. We recently closed on two mortgage loans. We refinanced the mortgage on our home and were required to co-sign on behalf of our son, who purchased a condominium. The underwriters for both lenders were extremely picky regarding both the quantity and quality of documentation, much more so than anytime we had gone through the process in the past. By the way we're not exactly subprime borrowers. At the time we applied for the loans, my FICO score was 800, my son's was 750 and my wife's was 740.
  6. Gatormb
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    Gatormb Well-Known Member

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    Sub prime is gone for owner occupied properties as it should be. As V stated the underwriting requirements have gone too far. A good underwriter used to do six loans a day. Now good if they do three.

    For example if you purchase a house for $500,000, put $250k down and borrow $250k with 800 credit scores and reserves of $200k i'm still going to ask you for:

    2 years tax returns
    30 days pay stubs if employee
    Most current p&l if self employed
    2 months bank statements (all pages) and explanations for all large deposits

    If there's an example of what a "No doc" loan should be the above is it. The pendelum has swung to far.
  7. rpmGator
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    rpmGator Well-Known Member

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    One thing for sure, when you are at record lows, it only has one way to move without setting another record.

    Too many got loans on prices that were too high in the first place. Buying at the top, isn't wise. As like I said, records go the other way sooner than later. Yet the stampede took the whole industry down.
  8. 92gator
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    92gator Well-Known Member

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    ...aggravated further still, by the impact the neo-libbies' policies have had on the "I" in the DTI. Proliferation of real Jobs might have mitigated the impact of these regs; instead, we have more restrictive regs...and part time jobs replacing full time employment.

    Surely a housing boon looms just around the corner!
  9. orangeblueorangeblue
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    orangeblueorangeblue Well-Known Member

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    Neoliberalism is an already-taken moniker and it doesn't quite mean what you'd like it to.
  10. 92gator
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    92gator Well-Known Member

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    Though I do use the term...'liberally' (pardon the pun)--mainly to distinguish it from traditonal liberalism.

    How about 'dummy-rats'?

    Is that one 'already taken'? ;)
  11. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    It is rather confusing because most Democrats are essentially "neoliberals," but not in the sense that the person throwing around the term "liberally" employs it.
  12. 92gator
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    92gator Well-Known Member

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    "The person" has a handle--don't hesitate to engage.

    Sorry for the confusion fella's. I'll just go with dummy-rats (TM) from here on out, since obviously that doesn't cause confusion at all, and frankly, the distinction between 'neo-libby' (as I liberally employ it) and democrat, simply no longer exists.

    And forget "most Democrats"--excuse me--dummy-rats (TM) (to distinguish from the vestiges of the heritage they inherited, then proceeded to pervert beyond recognition...)--every last one votes in lock step, and have raised fiscal irresponsibility to their highest virtue, as if it were engrained in the Constitution itself.

    :wink:
  13. orangeblueorangeblue
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    orangeblueorangeblue Well-Known Member

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    Are there smart rats?
  14. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    Some of them seem to find the cheese in those mazes.
  15. 92gator
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    92gator Well-Known Member

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    Allegedly. Many are graduates of Ivy League schools, Rhodes scholars, and the like.

    'Dummy' exposes the disconnect between stated objectives (e.g. help the middle class) and results achieved by the policies they champion (e.g.--decimating the middle class).
  16. wgbgator
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    wgbgator Sub-optimal Poster Premium Member

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    So, the smart Democrats (Smart-rats?) are the ones that reject neoliberalism in favor of social democracy. Like Kucinich, Warren and the non-"centrist" populist wing?
  17. fubar1
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    fubar1 Premium Member

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    I'm telling everyone I know to stay away from buying a house the next 3-4 years unless it's priced 20-30% below where it was at it's mid-2000's peak AND they plan to stay in it for 10+ years.

    Purchasing a home right now just doesn't make a lot of sense. Investors have pushed back up prices with cash sales and there's still plenty of inventory still left to come back online in the next few years.

    And we're not going to get solid HH formation on the demand side anytime soon.

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