...and their stupid, knee-jerk reactions via regulatory proposals haven't stopped, either. This is the latest joke from the Hill.
For those of you who have seen the cult movie hit "The Gods Must Be Crazy", this can be likened to throwing all rational thought, sense and sensibility to the wind - not just a Coke bottle. (For those who haven't, Wikipedia has a great sum-up of it, here: http://en.wikipedia.org/wiki/T.....t_Be_Crazy)
Rotate the "d" 180 - "The GoPs Must Be Crazy".
From a brief summary on GovTrack (http://www.govtrack.us/congress/bill.xpd?bill=h110-6254), the purpose of this newest proposal is:
Quote:
"To authorize the temporary participation of mortgage brokers and lenders under the FHA single-family housing mortgage insurance program"
What the distinguished Rep. Gary Miller [R-CA] and co-sponsors Rep. Joe Baca [D-CA], and Rep. Brad Sherman [D-CA] have in mind here, is to suggest brokers/bankers currently awaiting audited approval (or any who may apply to become FHA-approved) be permitted to immediately being originating FHA loans in the interim.
Can't you just see it now? Every non-approved broker in the country submits an app to FHA, bogging them down for months while they immediately begin originating fraudulent, sloppy or ineligible FHA loans and bog down the lenders as well? Great idea, M-O-R-O-N-S.
It's been forwarded to the Housing Finance Committee for consideration. The full text of the bill isn't available online yet. Let's just hope the disclaimer on GovTrack proves to be true in this case:
"The majority of bills never make it out of committee."
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Last edited by Robin on Tue Jun 17, 2008 9:47 pm; edited 1 time in total
I would love to be able to say that this was the most colossally idiotic piece of legislation I have ever seen proposed, but, sadly, it's merely one among many.
For all the indignance of the legislators, isn't there one of them willing to learn this business BEFORE promoting legislation to regulate it?
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Robin Sentinel
Joined: 30 Aug 2007
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Location: Loveland, OH
Temporary FHA Direct Endorsement Lender Participation Act of 2008 (Introduced in House)
HR 6254 IH
110th CONGRESS
2d Session
H. R. 6254
To authorize the temporary participation of mortgage brokers and lenders under the FHA single-family housing mortgage insurance program.
IN THE HOUSE OF REPRESENTATIVES
June 12, 2008
Mr. GARY G. MILLER of California (for himself, Mr. SHERMAN, and Mr. BACA) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To authorize the temporary participation of mortgage brokers and lenders under the FHA single-family housing mortgage insurance program.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Temporary FHA Direct Endorsement Lender Participation Act of 2008'.
SEC. 2. TEMPORARY AUTHORITY FOR MORTGAGE BROKERS AND LENDERS TO PARTICIPATE IN FHA SINGLE FAMILY MORTGAGE INSURANCE PROGRAM THROUGH DIRECT ENDORSEMENT LENDERS.
Section 202 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 620) is amended by adding at the end the following new subsection:
`(d) Temporary Mortgage Broker and Lender Participation Through Direct Endorsement Lenders-
`(1) AUTHORITY- The Secretary of Housing and Urban Development shall provide for mortgage brokers who close mortgages in their own names or in the names of other lenders, but who do not underwrite or service the mortgage, and other lenders not otherwise authorized to participate as mortgagees under title II of the National Housing Act (12 U.S.C. 1707 et seq.), to participate as mortgagees in the single family housing mortgage insurance programs under such title II, but only to the extent that--
`(A) the insurance of a mortgage under such title II made by any such broker or lender is performed by a lender--
`(i) who is authorized by the Secretary of Housing and Urban Development to process mortgages as a direct endorsement mortgagee; and
`(ii) who has a compare ratio, as such term is defined for purposes of the Neighborhood Watch system for monitoring lender and appraiser performance under programs of the Department of Housing and Urban Development, that is less than or equal to the national average; and
`(B) the mortgage broker or lender--
`(i)(I) is licensed, under the laws of the State in which the property that is subject to the mortgage is located, to act as a mortgage broker or lender in such State; or
`(II) is an insured depository institution, as such term defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), or an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and
`(ii) certifies to the direct endorsement mortgagee insuring mortgages for such broker or lender that the broker or lender has submitted an application for participation as a mortgagee in such single family housing insurance programs, except that the broker or lender shall not be required to have complied with the requirements for such applications regarding submission of an audited financial statement.
`(2) SUNSET-
`(A) IN GENERAL- Except as provided in subparagraph (B), this subsection shall not apply to any mortgage for which credit approval for the borrower is issued after December 31, 2008.
`(B) EXTENSION- The Secretary of Housing and Urban Development may extend the authority under this subsection for a period not longer than 6 months by causing notice of such extension to be published in the Federal Register before December 31, 2008.'.
So what good does this bill actually do? It does not stabilize values, help delinquent borrowers, address DPA programs, create more borrowers or lower rates…What does this waste of time bill really do? There are enough dumb dumbs who are FHA approved clogging the system right now…why invite more?
This industry gets more and more frustrating everyday…
Robin is right, the new applications would put FHA in gridlock for months and possibly years while unqualified lenders and brokers raped and pillaged the program.
NAMB has a history of lobbying for reduced requirements for brokers and removal of audit and net worth requirements.
Get on the phone with your State Reps, email and write the Senate Banking Committee, and definitely call, write, email, and fax Gary Miller, Joe Baca, and Brad Sherman that are throwing approved brokers and lenders under the bus along with borrowers and taxpayers.
Say no to crack for the mortgage crack heads.
_________________ "Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." -Albert Einstein
Suppose you were an american idol, and suppose you were a member of Congress; but I repeat myself.
-Mark Twain
“If signed into law, this is a victory for all consumers who need access to the FHA program to refinance into a more affordable loan". “We thank Representatives Miller, Sherman and Baca for their leadership in addressing the importance of making FHA programs more available to homeowners."
Who is this guy kidding? There are enough banks and lenders with experience and who got FHA approved the proper way. It's like if there was already a McDonalds every 5 blocks, but now they want to put one up at every block and call that a victory because people now have better access to a Big Mac.??? I already talk to enough FHA prospects who tell me things like "the other lender told me FHA doesn't allow a non-occupying co-buyer" or "the other lender told me the monthly mi is for the entire life of the loan", "the other lender told me I can only go FHA if I've never owned a home before" etc etc, and when I try to tell them that the other lender apparently hasn't a clue on how to do FHA they think I'm the one hiding something.
Heck, I work at a large bank and there are enough LOs in my own company that don't know FHA.
your complaint that every time you talk to a different person at FHA you get a different answer will lead the government to maybe originate on their own by using all the bodies out there like they are with this originate at will legislation
there only only goal on the governments plate,
putting butts back in these houses, that foreclosure rate for a contained crisis is doubling end over end
they don't care who stops the pain, anyone will be able to qualify for those empty houses with the government as banks get tougher and tougher until they whither
remember instead of the government trusting us and not blaming us for overbuilding and values dropping, instead acting like we caused this on purpose
instead they are rebuilding the wheel, government is the only one buying now they will be the only ones making the idiotic rules, this is just starting, with Dodd and the rest getting caught in the CW net, it just ramps up.........
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