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THE DESTRUCTION OF THE MORTGAGE INDUSTRY CONTINUES
November 6th, 2007 11:08 PM

Dear Friends,

In continuation of the previous TEAMBLOG in where we discuss the avenues of incoherence by our current members of Congress, we are now at a crossroads. By a vote of 45 to 19, Chairman Representative Barney Frank and the Committee has approved the wording of HR BILL 3915 and it will go to the full House next week.

We welcome REFORM, however it is our understanding the Bill has been composed or written in such a way it will eliminate choice & ultimately increase costs and fees to the consumer. Moreover, the measures in the Bill seeks to enforce and/or change the manner of compensation awarded to a mortgage broker by eliminating the YSP or the Yield Spread Premium altogether. This would force mortgage brokers to go out of business & will eventually harm consumers as these YSP's are rebates that can lower costs and fees for all mortgage transactions.

As written today, this legislation must be stopped as the economic consequences for the future of this country will become catatastrophic.

THESE ARE THE CONSEQUENCES

As mentioned earlier, mortgage brokers and mortgage companies will go out of business due to the drastic steps outlined in the Bill. Compensation of a YSP or Yield Spread Premium, will no longer be offered. (Please review previous TEAMBLOG).

The choice of loan programs will be curtailed. Borrowers will no longer be able to apply for the following type loans:

STATED INCOME - VERIFIED ASSETS 

NO POINT LOANS

NO FEE LOANS

PROHIBIT THE USE OF 'BUYING DOWN' THE MORTGAGE RATE WITH ADDITIONAL FEES OR POINTS

PROHIBIT ALT-A LENDING FOR BORROWERS WITH CREDIT PROBLEMS

ALL BORROWERS BUYING OR REFINANCING THEIR HOME MUST PROVIDE 1040'S, W2'S, PAY CHECK STUBS, VOE'S - ENDLESS DOCUMENTATION

PROHIBIT ALL ARMS - ADJUSTABLE LOANS

PROHIBIT ALL INTEREST ONLY LOANS

All of these particulars are just a few of the strict guidelines Congress wants to enforce.

The havoc this legislation will create is tantamount to the beginnings of a DEPRESSION.

Most persons work hard, pay their bills and would like to own a home. Owning a home is a part of the 'American Dream'. Due to the meddling of Congress in other economic situations, the type, the quality and the pay of the jobs we have today are grossly inferior from decades past. These actions by previous Administrations and politicians in Congress, has slowly and erratically created the abuses in the sub-prime mortgage industry and the avalanche of foreclosures we have today.

By deciding to eliminate the ability of Americans to choose a specific loan product, the passage of this Bill will create additional problems in the economy and the mortgage industry.

How can someone buy a house if their self-employed?

Most income generated by self-employed persons are deducted. How can a business owner be approved for a loan with tax returns that show minimal income, if any?

What about income from wage earners?

How can someone buy a house if they're a Teacher, a Gardener, a Librarian, a Social Worker, a Waiter, a Waitress, a Cook, a Flight Attendant or a Taxi Driver? They too should be afforded the opportunity to seek the 'American Dream' of home ownership. This Bill in Congress will end this chance for a family to purchase a home as there will be no mortgage available to help them qualify.

If most of the population is unable to Refinance or Purchase a Home, what will happen to the American economy?

A DEPRESSION is the ultimate course.

This might be a 'gloom & doom' scenario, but the housing industry has activated the economy this decade. With homeowners losing their homes, unable to refinance or purchase due to the extreme underwriting measures Congress will impose with this Bill and the elimination of construction jobs, the downturn in furniture & appliance purchases and other byproducts for the home, the problem will strangle America.

Like Howard Beale in the movie 'Network', this country is being controlled by interests bent on destroying the good will of its citizens. The money being spent by lobbyists is astounding! The power the Congress of any political persuasion has, is being used to terminate the businesses of good, honest and decent people.                   

                           ***

After 18 years of business, our beloved company, MoneyTeam, will cease to exist because men of questionable backgrounds have decided to use power without debate, to be involved with an industry they know nothing about and are compelled to solve a problem which they had a hand in creating.

                           ***

There is no need for the termination of the mortgage broker business. Of course there were abuses and reform is necessary, but the elimination of our livelihood without thoughtful debate is a persecution of American ideals and freedom.

Common sense is no longer a hallmark once displayed proudly by our Founding Fathers and previous generations. The bunch of politicians we have in Washington today are a disgrace.

Please click below & get MAD!

Howard Beale Tells The Truth!

www.americanrhetoric.com/MovieSpeeches/moviespeechnetwork2.html

Thanks Again

 

 


Posted in:General
Posted by Jesse Dorado on November 6th, 2007 11:08 PMPost a Comment

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