Posted by KimK/pa on 8/25/07 10:55pm
Msg #207708

Pennsylvania proposes regulations to protect Pa. borrowers

This proposal is to help Pennsylvania mortgage borrowers understand their mortgage and that the lender is to make sure that the borrowers can afford it. It also states about improperly influencing appraisers, title companies, notaries ect. ect.
Cut and paste to read

http://www.banking.state.pa.us/banking/lib/banking/news_and_events/press_releases/2007/07-07-05-mortgage_reg_rls_0705071.pdf

More disclosures could be on their way for Pa. mortgages.

Reply by Kimberly Kislak on 8/25/07 10:56pm
Msg #207710

My link worked, forget about cut and paste. lol

Reply by Julie/MI on 8/26/07 4:50pm
Msg #207758

Feeble

I read through the proposal and it really was feeble; the note contains all the info the borrower needs except for whether or not they have an escrow.

A clear example of more paper is not going to help decline foreclosures.


While the intent is "nice" I really had to laugh at the keeping the notes part regarding the borrowers fixed debts. Whose to say the borrower isn't going to rack up a credit card debt or finance a swimming pool, during the coarse of the loan?

Reply by Kimberly Kislak on 8/26/07 6:18pm
Msg #207770

Re: Feeble

While I agree that the proposal will not help the foreclosure problem that is about to tidal wave America, at least Pennsylvania is acknowledging the problem and appearing to make an attempt to help Pa. homeowners.
Since I am not a fortune teller, I do not know whether this really will work.

Reply by Julie/MI on 8/26/07 9:24pm
Msg #207781

Re: Feeble

I think someone just wants to get elected to something, that the public wants something to be done, but I see it as folks need to stop using their homes to pay off credit card debt.

You may find yourself in an attorney only state if someone thinks an attorney closing a loan is in the consumer's interest.

This isn't directed toward your or you commonwealth, you were just the first to post.

Reply by BrendaTx on 8/27/07 8:40am
Msg #207822

Re: Feeble

**You may find yourself in an attorney only state if someone thinks an attorney closing a loan is in the consumer's interest.**

Isn't that the truth.

The more rules we get...the more legal eagles you get poking around in the mortgage business the more you may not like it....unless you are a consumer who doesn't really want to deal with your own choices. JMHO.

Reply by WDMD on 8/27/07 9:08am
Msg #207826

Re: Feeble

**You may find yourself in an attorney only state if someone thinks an attorney closing a loan is in the consumer's interest.**

I've wondered about these attorney only states. I was told by attorney's I have dealt with in the past that whoever hires the attorney is the one that the attorney represents. Now that being said, if title or lender hires the attorney to conduct the closing, how would that protect the borrowers?

Reply by ReneeK_MI on 8/27/07 9:21am
Msg #207836

It doesn't - just as you said. n/m

Reply by ReneeK_MI on 8/27/07 7:43am
Msg #207817

I'm finding one huge & powerful part in this

From the proposal:

"A licensee shall not offer a loan without having reasonably determined, based on the documents and information provided under this subsection, that the applicant will have the ability to repay the loan in accordance with the loan terms and conditions by final maturity at the fully indexed rate, assuming a fully amortized repayment schedule."

The impact of this is potentially huge, WOULD ABSOLUTELY affect the foreclosure rates and is one of the first (if not the only) proposals I've seen that makes logical sense AND could actually affect something.

Reply by Julie Williams on 8/27/07 8:38am
Msg #207821

Re: I'm finding one huge & powerful part in this

It sounds nice, so if the arm had a cap at 14 percent and the highest fully amortized payment would be $1,800 and the payment began at $1,200, this gives the borrower the knowledge at would the highest payment could be, but as I said in my post to Kimberly, fixed debt is too broad a term, and folks could still end up in dire straights unless they get a higher paying job and don't finance any more debt. It also doesn't not take into account second mortgages, which is what I have been closing a bunch of as of late. People are getting out of their Helocs and going into fixed rate seconds.

The propsal will be a boom for sellers of entry level homes, and property values will further depreciate on larger homes.

Reply by ReneeK_MI on 8/27/07 9:03am
Msg #207824

But they have to QUALIFY at that FIR - that's the impact n/m