Why Oregon Homebuyers Should Shop Their Loans Before Going Under Contract

A few years ago, before the real estate market got crazy hot (and before we changed the OREF Sale Agreement form), it wa not unusual for a buyer to submit their preapproval letter to their seller, go under contract, and then try to find other lenders who might offer better rates or terms.

But in 2013, TRID [1] was enacted as a part of the government’s response to the 2007/8 Financial Crisis; Dodd Frank, the massive 2010 2,300 page rewrite of financial regulations (containing another 22,000 pages of administrative rules) was created, and the Consumer Finance Protection Agency, or “CFPB”, became its most prominent offspring. Continue reading “Why Oregon Homebuyers Should Shop Their Loans Before Going Under Contract”

As with much that the CFPB does these days, there is some that is good, some bad, and some, just plain ugly. And for a cynic like me, everything – even the good stuff – seems to be imparted with a slightly paternalistic and patronizing tone.

You see, in the CFPB world view, the American people are divided into two basic camps: One is made up of evil, bloodsucking, vampire squids, looking to latch onto members of the other camp; the gullible, naïve, dumb and dumber set, who were all born yesterday. Continue reading “TRID Fatigue? Here’s What Buyers Need To Know (In Plain English)”

In the July 23, 2015 Wall Street Journal, former Senator Phil Gramm, wrote about the “double whammy” effect of Dodd-Frank (here). First, it “…has hit the banking industry hard, hurting the recovery.” But second and worse, “…is its effect on the rule of law.” Continue reading “How Dodd-Frank Destroys The Rule Of Law”

August 1, 2015 is Showtime! That’s the date that the TILA/RESPA integrated disclosures rules known as “TRID” (hereinafter, the Rules.”) go into effect, compliments of the ubiquitous Consumer Financial Protection Bureau (“CFPB”), devil spawn of Dodd-Frank.

Realtors^®Take-Aways. The Rules will change how, when, and what paperwork, lenders, mortgage brokers and escrow, will provide to borrowers during the loan application and closing process. Continue reading “Realtor® Trepidation Over TRID”

“…the United States is still producing around $800 billion a year less in goods and services than it would if the economy were at full health, and as a result millions of people aren’t working who would be if conditions were better.” Neil Irwin, senior economics correspondent, N.Y. Times, Aug. 4, 2014.

If the U.S. economy were a person, we’d characterize them as suffering from chronic malaise, interrupted by occasional bursts of vitality. In a recent N.Y. Times article subtitled “A Recovery in Need of a Recovery” (here), author, Neil Irwin, the paper’s senior economics correspondent, does an excellent job identifying and discussing those sectors of the economy in need of a Venti Americano, with a few extra shots of caffeine. Continue reading “America’s Economic Malaise And The Importance Of Real Estate”

Former Congressman Barney Frank testified before the House of Representatives Committee on Financial Services on Wednesday, arguing that the Dodd-Frank Wall Street Reform and Consumer Protection Act and the voluminous set of regulations that followed shortly thereafter was a positive for the economy and safeguarded the American public from ever having to face an economic down turn the likes of the great recession ever again. Frank, a former chairman of the committee he now sat in front of, was one of five witnesses called before the committee to assess the impact of the law from multiple angles. He was the lone witness to testify in favor of the law. MReoprt, July 23, 2014

It’s been four years since Dodd-Frank was signed into law. So how’s it going? Has Wall Street been reformed? Have there been any innovative law protecting consumers from themselves? Continue reading “Q-Rant! Barney Defends Frankendodd!”

Wall Street Journal (May 8, 2014 by, Nick Timiraos, “5 Takeaways on Fannie, Freddie Earnings” ): “Mortgage giants Fannie Mae and Freddie Mac are sending $10.2 billion to the U.S. Treasury after reporting combined first-quarter profits of $9.3 billion. But Thursday’s earnings reports hinted at a possible cooling off in the profits of both companies, which have benefited from large one-time gains over the past several quarters. They also suggested a modestly softer housing demand.” Continue reading “Fannie, Freddie, And The Future”

Ever wonder why laws, rules and regulations keep growing, becoming more complex rather than less? Readers at this site know my feelings about Dodd-Frank (aka “FrankenDodd”) at 2,400 pages [not counting the thousands of pages of still unfinished rulemaking] and the Volker Rule at 900 pages. Both laws grew out of a Congressional knee-jerk reaction to the financial crisis of 2008/9, and are glowing examples of “mission creep” i.e. where a limited engagement intended to accomplish defined goals expands exponentially beyond control. The result: An incomprehensible and bloated set of laws and regulations bearing no resemblance to their original purpose. ~PCQ Continue reading “The Rule of Nobody: Reasons Behind Regulatory Complexity”

As readers of this site know, I have no love lost for the Dodd-Frank Act. To review my prior rants, go to posts here and here. The gist of my objection to the law is that it casts too wide a net. It was created by politicians, bureaucrats, and regulators that had no real idea how it would be implemented. This is because they neither understood nor cared about implementation. To them, that issue would be worked out during the administrative process, which they regarded as mere details for underlings. But as we know, details are where the devil resides…. Continue reading “FrankenDodd’s Collateral Damage: Banks Too Small To Succeed”

Introduction. This is Part Two of ATR and QM FAQs. Part One is here. The FAQs below come directly from the most recent CFPB guidelines for January 2014. As I go through the rules I will supplement the FAQs. This information does not apply to the Big Banks, e.g. B of A, Morgan Stanley, JPMorgan, etc. Rather, it applies to “small creditors” such as community banks. Unfortunately, the regulators have sought to apply the ATR/QM rules even to Mom and Pop who may sell an occasional rental unit or two.[1] The CFPB gives “small creditors” or “small entities” certain underwriting latitude in the application of the ATR/QM rules. Generally, these are persons or entities with no more than $2 billion in assets that make no more than 500 mortgage loans per year. Originally, the small entity exceptions were intended to apply only to “rural or underserved counties,” but until January 10, 2016, the exceptions will apply to all small creditors, regardless of location. Caveat: This material below is informational only and does not constitute “legal advice.” Moreover, it is summary only, and for more information, the actual regulations should be reviewed. ~PCQ [For full article, go to link here.]

[To be continued.]