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  • NewRetirement User

    71 year old from Rochester, NY

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  • H.R. 3915, Mortgage Reform and Anti-Predatory Lending Act, would make numerous changes to federal laws that regulate mortgage practices with the aim of combating predatory lending practices and providing certain protections to borrowers and investors.

    These changes include subjecting all mortgage originators to licensing and registration requirements, establishing minimum standards for creditors, and establishing various consumer protections, such as prohibiting excessive fees for certain types of mortgages. H.R. 3915 would require loan originators to participate in a Nationwide Mortgage Licensing System and Registry, NMLSR, that would be by nongovernmental entities or HUD in coordination with the Federal Banking Regulatory Agencies.

    H.R. 3915 would set the standards for this system, require HUD to determine if State Licensing procedures have met such standards, and authorizing the registry administrators to assess fees (revenues) to cover the cost of maintaining and providing access to information from the NMLSR. H.R.3915 would impose several private-sector mandates as defined in the Unfunded Mandates Reform Act, UMRA, on the mortgage finance industry, by creating a licensing and registration system for mortgage loan originators, setting new mortgage origination standards, and establish requirements for high-cost mortgages. see

    http://www.cbo.gov/ftpdocs/88xx/doc8804/hr3915.pdf

  • Login to rate this answer:   Answered on 11/12/2007
  • NewRetirement User

    78 year old from Portland, TX

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  • This is more another question than an answer to the above...
    I think that the Fed Government was mostly responsible for predatory lending (due to Dodd-Frank) forcing banks to make loans they knew would probably never be paid back. I think they were acting on some promise of help from the Federal government.They loaned to people who could pay nothing down, had poor credit history and perhaps had no source of regular income. The banks would not have picked such poor investments on their own, but feared being 'red lined" (accused of prejudice against some poor or run-down neighborhoods) which would cause the bank much adverse publicity. That's only my understanding. I'm not sure what "mortgage reform" is being considered..

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    I am concerned about what costs and regulations might be imposed on private lenders such as myself. I finance buyers who perhaps cannot get financing from a bank. It makes more income for me than selling a house outright. So far this has financed my retirement. And since I have the option of foreclosure if the buyer cannot or does not pay, I feel I have some protection for my investment, but I do not have financial backing from a bank.. I feel that I will probably be penalized by ANY new mortgage reform that is passed. I'd appreciate another opinion.

  • Login to rate this answer:   Answered on 12/13/2014
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