President Obama is asking HUD, the DOJ and lenders to find a way to lend to more people with credit issues. How do you think this will all play out?
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History always repeats itself! Why teach our children the right way when the government consistently disappoints in their repeated policy to discriminate the actions of the paying, honest consumer who works hard to pay their bills and not use the system to their benefit! You go Obama, make it easier without first thinking about the reasons why bad credit is earned…
Amen, Monica !! The something for nothing crowd raises it’s ugly head again!
Amen, Monica.
The something for nothing crowd raises it’s ugly head again.
Bad credit is earned just like good credit!
Amen, Monica!
Bad credit is earned the same way good credit is earned.
The something for nothing crowd has raised it’s ugly head again.
I don’t know if I should stop my head from exploding or not. Just sayin’.
Here we go again…
As Yogi said, "Deja vu all over again."
Agreed, Monica. Where better to look for lessons learned from past experience than the words of Henry Cisneros who participated in both sides of the previous sub-prime disaster as both HUD Secretary and member of the boards of Countrywide and of KB Homes. In a New York Times interview in October of 2008 he concluded that, “people came to homeownership who should not have been homeowners.”
Do we really have to learn this lesson again?
Nothing to say anymore. The next day will change again..again.
You mean that D.C. is talking out of both sides of their mouths again? We have been saying this since the inception of the CFPB, and actually prior with LO Comp. Middle America will be hurt by rules like ATR/QM – 3 points cap for Fees, and they have with banks placing minimum loan amounts in their lending portfolio. Banks will and did place overlays on their products. We have been in a long freeze of "loose" Mortgage Lending. The last 2 years have given us some Non-QM products, great. But FHA certainly is not being utilized like it could, and understandably so, with the Lenders being on the hook with FHA versus other products. Until this aspect of it changes, most Lenders are not going to re-write their guides. I have said this many many times, and will continue to apply common sense to this equation: Until the CFPB is either dismantled or given appropriate oversight, the Lending arena will not change. The only way the CFPB will either be dismantled or given appropriate oversight is by electing someone from the right side of the aisle. It's pretty simple. But maybe millennials think that Bernster will give them free houses too. And our media will not run a story on the CFPB. So the average person has no idea what is going on regarding Lending. How do we fix the root of the problem, we should be asking ourselves in the Lending and RE community. Having panels and confernces are obviously not getting to the masses like a pandering speech by the current administration.
Are you kidding me????? Ridiculous. Enough said.
you guys are so cute trying to play bipartisan…You forgot to mention in your report today how Obama says loosen up but is using his vicious RottWeiler’s and Pitbulls at the CFPB to crucify any and all lenders who do not follow the straight and narrow. Obama once again lying through his teeth that he wants to help people with his lips. then goes behind closed doors and finds out from the CFPB how much they have collected from the rich to fill the treasury. Kind of like the story of robinhood and the sheriff of Nottingham and the evil brother of the King who kept robbing the whole country for his own benefit.
So let me understand this. As a property owner I am going to be forced to lease MY property (read this as take the risk and assume ALL the liability) to an Ex-Con? If it goes bad (can't imagine why that might happen?) I open myself up to litigation from surrounding neighbors, find myself on the hook financially for damages because my homeowner's insurance may possibly find a loop hole to not pay a claim (perhaps for example,because I didn't take the necessary steps to find the qualified tenant who didn't have a reputation for misdeeds) and a whole host of other financially disasterious reprocussions and the Government will certainly back me and protect me and cover me right? Hmmm, Somehow I don't think so based on examples in the past mortgage melt down. Instead based on this past example I will likely be sued by the Government for placing the community in harms way, causing expenses to the local municipality for Law Enforcement and Fire services, likely have my property Red taged and finse levied against it. I know these are slight exagerations but somehow, ok call me cynical, but I don't get a warm and fuzzy feeling about the outcome based on history.
It will never cease to amaze me the level of stupidity that our elected officials can rise too! Rent to criminals and lend to people who have a history of not paying….Brilliant!! NOT
To be politically correct ….has he lost his mind again??? Bring JOBSs back so citizens can make a good living wage to afford a home. Whay hassn't their been a foreclosure on the White House? It's apparent we can afford it.
Guys…Read the article again and look at the date. It was written and issued on April 2nd, 2013. Here is the link: https://www.washingtonpost.com/business/economy/obama-administration-pushes-banks-to-make-home-loans-to-people-with-weaker-credit/2013/04/02/a8b4370c-9aef-11e2-a941-a19bce7af755_story.html
Please do more research on your shows. Because of the several hundred mortgages I’ve originated over the past 3 years, it sure isn’t getting any easier!
Setting aside the stale date on the WaPo article about loosening mortgage credit, there are a couple of other things to mention. For one thing, the administration is not *forcing* banks to make loans to people with crappy credit. Encourage, sure–but all administrations do that. Nothing in that old article even hints that there is any coercion.
But here’s what is really going on: there is a false narrative out there (and I think you guys are helping to perpetrate it) that goes something like this: “Rates are really good now and property values are recovering, but the banks’ lending standards are too high for anyone except for those with a large down payment and perfect credit to qualify.” They’ll point to the high median FICO scores of conventional and FHA loans as evidence.
There are a couple of problems with this. First the reasoning is fallacious (get your minds out of the gutter); is it not possible that the median scores are higher because only people with higher scores are bothering to apply? Think about it: if you believe that narrative, that you have to be perfect to get a mortgage, you are less likely to make the attempt, because you don’t want to get rejected. Nobody does. So now we have a classic “self-fulfilling prophesy.”
Here are some facts–and they have been true even in the wake of the 2008 crash:
* A borrower with a FICO score of 620 or higher and an ability to document income and assets is highly likely to be approved for a purchase or refinance (580 for FHA).
* Someone can have a great deal of derogatory information on his or her credit report to get a credit score of 620–what one could reasonably characterize as “jacked up credit.” Their chances of getting approved are still very good.
* We all use one of the two Automated Underwriting Systems (AUS) for our loans. If Desktop Underwriter returns a finding of Approve/Eligible and we have properly documented the file, the flesh-and-blood underwriter who issues the final approval will in all likelihood agree with those findings.
Those of us in the trenches every day know that the REAL challenges in doing this work have to do with the intricacies of disclosures and Reg B time frames (among other annoyances). Getting people approved–even those who are really imperfect–is not particularly difficult.
I would much rather see people with an important bully pulpit (yes, I’m looking at YOU GUYS, Frank and Brian!) spend time talking about how getting a mortgage is possible, regardless of what the prevailing narrative is. While the days of super easy deals is long gone, the fact remains that, given some encouragement and guidance, a lot more people would become homeowners.
Whaddaya say, guys? With me?
Yer pal,
Joe Parsons
PFS Funding
Dublin, CA
I think my headache is returning… it seems that government has gotten too big and needs to get out of the way. It also seems that too many are seeking to justify their place in those cozy chairs, to come up with the same old, tried and untrue stuff. Someone aught to teach our officials recent economic history and why it is so unsmart to repeat dumb mistakes of the past. In fact, the more this stuff happens, the more suspicious I tend to get about why this keeps happening. Maybe there is a greater sinister plot behind those curtains. Whenever something goes badly wrong, economically, few always make out like bandits.. Bandits?! Could there be a pervasive, perpetual agenda behind all that is apparently stupid, with evil latent..? the old slight of hand on a massive scale…? Hmm. Is anyone paying attention and asking the right questions ? I'm outta here..
When I saw that on Facebook on April 1, I thought someone was just playing an April Fools joke. Are you sure that headline is valid?
How could anyone begin to top almost all of the comments below. Bravo! It's obvious to me that the President is stirring the pot politically, in that he gives those in his party, who are going for his office, a voice to expand upon his words by speaking to the crowd, who feel entitled, yet have not yet earned the right to get what the rest of us have worked so hard for. And, yes. Here we go again! Stupidity, or what it appears to be, will give us more shovels to dig us a bigger hole than what certain politicians have already put us in. Let's try to bring sanity back with good choices this time on our part, come November.
Will again the government always wants to push the horse and wagon up the hill, meaning this.
They want the lenders to lower the standards, HA let's try this, teach the people with lower credit standards how to RAISE their standards. By teaching the people "who want to learn" how to improve their credit also teaches them how to live with better standards after they get thieir homes. This will keep them from foreclosuring in the future. Which will teach their children better budget standards. Stop "handing out" where we can teach in "helping out"…..