Restoring American Financial Stability Act of 2010
When this new law is fully implemented, it appears that Mortgage Brokers will be limited in what loans they can originate and one wonders if mortgage brokers will even survive this change.
- One of the provisions of the law requires the lender to retain a percentage of ownership, which clearly will not be possible with brokers, but might work with wholesale lenders, where brokers send their loans.
- Another provision sets the compensation to a fixed amount, potentially being so low, it’s not worth doing the job.
- The new disclosure requirements are very cumbersome and most borrowers find them to be confusing.
An overview of this law is as follows: Read the rest of this entry »
Are they blameless in this real estate debacle?
I find it interesting that real estate agents seemed to have dodged any significant regulation as a result of the meltdown in Real Estate. While lenders and appraisers have had massive changes in how they are allowed to do business (see related blog postings), almost no new regulation is aimed at the real estate agent. Read the rest of this entry »
I may have helped this become a reality
Of my many complaints about adverse changes in the real estate industry, my number one complaint has been buyers being forced by banks to use No Name Escrow companies. These (bank (REO) chosen) escrow companies were often far away, usually in S. California and they provided terrible service and delayed escrows. So, I was shocked and angered when CAR, our Realtor organization, issued a “red alert” opposing bill AB 957, which gives the buyer the right to choose escrow. I couldn’t believe it. Read the rest of this entry »
