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Federal Government passes GSE Reform measures

The bills approved by the Capital Markets Subcommittee are: H.R. 1223, the GSE Credit Risk Equitable Treatment Act. The legislation, introduced by Capital Markets Subcommittee Chairman Scott Garrett, helps clarify the risk retention rules required under Section 941 of the Dodd-Frank Act to make clear that Fannie Mae and Freddie Mac will be held to the same standards as any other secondary mortgage market participants.  A GSE loan purchase or asset-backed security issuance would not affect the status of the underlying assets. The legislation was unanimously approved with a vote of 34-0. H.R. 1221, the Equity In Government Compensation Act. [...]

GSEs NAR Profit and Welfare

What happens next in the financial markets of the mortgage industry is up in the air. Our current system is a failure when markets go down. It cripples our industry, the financial markets, and millions of consumers. The National Association of REALTORS released their reform recommendations. As one of the chief lobbying groups in Washington DC, you can bet that government is listening. They highlight the issues. Government Sponsored Entities are problematic. Anytime you have an artificial business that shares profits when times are good, and gets bailed out by taxpayers when times are bad - risk of collapse is high. [...]

By |2018-05-03T21:25:51+00:00February 17th, 2011|Broker-Agent Information, Main category, MLS Insights|0 Comments

740 and 25% are the new magic mortgage numbers

The Frank-Dodd bill was designed to insure that loan originators to have any financial interst in the terms or conditions of a loan. But in a policy change today, Fannie and Freddie announced changes in the terms and conditions of a loan that modifies their financial interests. Thats right, the Government Sponsored Enterprises (GSEs) just did exactly what other loan originators are denied from doing by law. Specifically, charge higher interest rates for higher risk loans. If you do not have a credit score of 740 or better, or put down 25% of the purchase price - you will pay [...]

By |2018-05-03T21:25:52+00:00February 8th, 2011|Main category|0 Comments