Comments on: SB385 – Non Traditional Mortgage Guidance

By: confused

confused — Wed, 07 Mar 2007 03:56:13 +0000

The guidance is just that. It is not a law, it does not require anything.

Atleast on the federal level the guidance can critize a WAMU or other large bank and they will listen. The state banks and lenders regulated by the dept. of Corporations are so small that they will not care about guidance.

Again, nothing is actually restricted here.

By: Chuck Ponzi

Chuck Ponzi — Thu, 01 Mar 2007 17:53:38 +0000

I think they will start to care only when they are forced to. When broker licenses start to get pulled, then it will matter.

I know from the insurance industry that the CA commissioner is very aggressive on pulling licenses. When it’s your livelihood, you perk up and listen.

If the guidance passes and the CA commissioner makes it his priority to enforce it, we’ll likely see something happening.

However, I’m of the opinion that brokers are underregulated. Where an insurance salesman (which can have a much smaller impact on the average person’s financial health) has to take 20 to 40 hours of classroom time per year, the broker is so small, it’s not even worth mentioning. It’s as easy as getting a real estate license. Shameful.

By: sunsetbeachguy

sunsetbeachguy — Thu, 01 Mar 2007 17:41:50 +0000

HB Bear:

I agree, I did the same with an economic argument.

Letters & communications from constituents matter.

I see it first hand.

Every RE bubble reader should do the same.

By: awaiting bubble rubble

awaiting bubble rubble — Thu, 01 Mar 2007 05:46:53 +0000

Isn’t this like voting for Al Gore in 2007? Great and obvious idea, but seven years too late.

By: HB Bear

HB Bear — Thu, 01 Mar 2007 04:19:09 +0000

sunsetbeachguy,

Great suggestion. I logged onto his website and sent him a message myself. I didn’t get the impression from the website that our fine state senator was much of a populist, so I put my argument in terms of economic stablity.

Again great idea.

By: Dr. Housing Bubble

Dr. Housing Bubble — Wed, 28 Feb 2007 22:32:15 +0000

Unfortunately, those that deal face to face with clientele will not adhere to this. Do you think a mortgage lender cares about lending standards? These loans are packaged and resold on the secondary market so these brokers never have skin in the game. This is a rubber stamp. The only time this will stop is when those at the top lose the hunger for mortgage backed securities and the default rate is too high for their blood. We are seeing that and all these quick payment defaults are being kicked back to the mortgage lenders and then what; they are left with an overpriced home and they’ll need to unload it in a cold housing market. The fun is only beginning.

By: IrvineRenter

IrvineRenter — Wed, 28 Feb 2007 21:38:53 +0000

This bill should cause the lending industry to clean up its act going forward, but the damage is already done. It will probably be effective because it will give the FB’s grounds for a lawsuit. The attorney’s PAC is probably pushing the bill as well.

By: sunsetbeachguy

sunsetbeachguy — Wed, 28 Feb 2007 21:27:31 +0000

I sent a message to my State Senator to support the bill. It probably won’t matter but at least I did my part.

How about the rest of you bubblesitters?