Posted by Genkichan on 2/27/06 7:22pm
Msg #100436
New Montgomery County MD legislation
For those of you working in Montgomery County, MD --
Effective March 8, 2006 is a new Act on preditory lending in this county. I just spoke with a mortgage broker with whom I've worked in the past. All major sub-prime lenders are quickly pulling out of our county, since all new sub-prime loans are subject to audit.
The actual document can be found at:
http://www.montgomerycountymd.gov/content/council/SCANNED_LEGISLATION/36-04.pdf
I'm not sure if this is good news or not. On the one hand, we as TPL closers will not be exposed to the risk associated with closing these loans. On the other hand, that's business out the door, too. I haven't actually closed all that many sub-prime loans around here, as most of the loans are conforming. However, I'm sure there will be a noticable drop in available loan signing business in the immediate near future. Great that borrowers will be increasingly protected from the wrath of Ameriquest/Argent, etc. Bummer for those people who actually really, truly need them. And for the rest of us whose business will be decreasing! I have yet to render my own personal opinion of the whole situation.
Apparently, the rest of MD is unaffected. Just thought you'd like to know.
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Reply by JD/MD on 2/28/06 5:46am
Msg #100487
"The purpose of this legislation is not to restrict the subprime lending market, but to identify and regulate mechanisms, policies, or terms that discriminate against protected classes of individuals."
Wonder if someone from a non-protected class of individuals is covered by this legislation. Typical Montgomery county BS, where the local government feels it must protect the population from itself in all matters. As you said, bummer for those who actually need these loans.
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