Posted by Mitch_MD on 3/3/06 5:39am
Msg #101573

40 lenders leaving now...

...and the list continues to grow. More to read here:
http://www.washingtonpost.com/wp-dyn/content/article/2006/03/02/AR2006030201906.html

The big problem is the new "penalty of $500,000 per violation against lenders that discriminate against borrowers who are racial minorities by giving them costlier loans than they give to other borrowers, sticking them with big penalties when they refinance, or overcharging them on fees."

Reply by JD/MD on 3/3/06 5:59am
Msg #101575

Again, I wonder if they will penalize lenders who stick non-minorities with pre-payment penalties or costlier loans. I don't blame lenders for pulling out. If they offer someone who has a bad credit history a "costlier" loan they are just opening themselves up.

Reply by LilyMD on 3/3/06 6:28am
Msg #101578

I wonder how this will affect those trying to refi to consolidate? Those with bad credit will not be able to get a loan with anyone but subprime. So it seems to me the new law could actually make a bigger mountain out of the mole hill it's trying to reduce.

Reply by Genkichan on 3/3/06 7:38am
Msg #101593

Oh, yes, but look on the bright side from the signing agent perspective. No more 2 hour signings with borrowers who don't understand the terms of these funky loans; no more MONSTER sized loan package with piles of extra junk docs; much less waiting until the very last possible moment into the wee hourse of the night for these lenders to get their acts together and draw the docs; no more clueless borrowers.....I could go on and on with our benefits....GOOD RIDDENS!!!

Of course, yes I do understand the flip side. I wonder what will happen to all those people who are already stuck with these loans and find themselves unable to refinance...

Reply by kkdmiddleton on 3/3/06 7:42am
Msg #101595

I heard about this!!! I can't believe it! I'm in the process of getting my TPL in MD. Hope there is still business when I get done LOL!

Reply by thnotary_NY on 3/3/06 7:44am
Msg #101597

Well, Well, what do you know about that.?! Minorities are being overcharged, again. DAM, It's getting so, you can't even trust your own banker.!!!

Reply by JudyinLa on 3/3/06 11:30am
Msg #101716

Why does this county feel the need to govern a person's finances? I'm not saying people should be cheated or ripped off, but seems to me, the county if placing government where it does not belong. Let's face it. Subprime loans are the only way for some folks to buy or refinance. Does that mean that county thinks poor people should only rent or sink in their own debt if there is no chance of refinancing? Why would only one county feel the need to do this?