Comments on: Mortgage Reform and Anti-Predatory Lending Act H.R. 1728 Implications

By: Todd

Todd — Thu, 11 Jun 2009 17:50:07 +0000

If you really look at this legislation, you will see that it was written to protect the banks, not the homeowners. It really sets things up so that anyone who sells a house with seller financing is very retricted as to what they can do.

This bill also attacks mortgage bankers by requiring the 5% interest in any loan they sell. While this may seem like a good thing on the surface, it will result in many legitimate companies going out of business. Who does this benefit? You guessed it: big banks.

Add to this the fact that Barney "Sellout" Franks supports it and you have the clincher. This bill needs to be voted down.

By: dantan

dantan — Sat, 06 Jun 2009 17:23:44 +0000

i agree with Steve P- i ran a brokerage in NV and have little sympathy for people in what they feel are unfair mortgages. Borrowers were far greedier than most loan officers. Everyone wanted to get rich off of the mortgage boom, but no one is willing to take responsibility.

Laws have changed to protect borrowers you can see all 50 states lending laws here:
http://www.bankapedia.com/mortgage-encyclopedia...
,but banks will have to fend for themselves when it comes to protecting themselves from predatory borrowers.

By: Craigslist Proxy

Craigslist Proxy — Sat, 06 Jun 2009 04:35:55 +0000

Insightful read. I have just bookmarked this at stumbleupon. Hope others find it as interesting as I did.

By: Craigslist Proxy

Craigslist Proxy — Fri, 29 May 2009 00:21:39 +0000

Some good points raised in that post. Will be back to check for more.

By: HR 1728

HR 1728 — Mon, 18 May 2009 10:45:22 +0000

Stop HR 1728!

Sign this petition - www.rescuethathome.com

By: Frank

Frank — Wed, 13 May 2009 12:04:56 +0000

@Steve: I agree wholeheartedly

@Dale: The sentence was worded very well, but I was referring to renters who continue to pay rent to their landlords only to have the mortgage owned by the landlord fo into default. This results in the renter being evicted in many cases despite having paid the rent.

By: DaleA

DaleA — Wed, 13 May 2009 10:28:06 +0000

I agree with Stevep's comment, that there were many predatory buyers who took advantage of the fact that they did not have to prove their ability to repay the money they were borrowing.

Also what do you mean by this statement
"For renters who have been stiffed by their landlords as their mortgage heads into default, the legislation will also provide an avenue for renters to prevent eviction."

not clear what that means

By: Vern M.

Vern M. — Tue, 12 May 2009 13:31:38 +0000

While predatory lending with mortagage loans is a despicable practice, I agree with Steve's comment in that people who take loans are definitely aware of the risks in borrowing money. They share a huge measure of responsibility in assessing their ability (or intention) to repay the loan in the first place. Borrowers cannot be viewed as being without responsibility in this area, period.

By: Vern M.

Vern M. — Tue, 12 May 2009 13:27:19 +0000

While lenders taking advantage of people who are simply looking for mortgage loans to buy a home are despicable, I also agree with Steve's comment above. Borrowers share a great measure of responsibility in assessing their ability (or intention) to pay back loans.

By: SteveP

SteveP — Tue, 12 May 2009 02:26:19 +0000

Predatory borrowing contributed to the financial crisis far more than predatory lending. Specifically, thousands of mortgage fraudsters sought out mortgage lenders with poor underwriting and quality control processes and then exploited those weaknesses for their financial gain. The vast majority of mortgage foreclosures of late were early payment defaults where the lender was duped by predatory borrowers into over lending on properties. In almost every case, these predatory borrowers absconded with the excess proceeds that exceeded the real value of the properties without making even a single payment. Congress needs to pull their heads out of their butts and pass an anti predatory borrowing act ASAP!