Whoop! Whoop! What could go wrong??
=================================
MEET THE “ACCESS TO AFFORDABLE MORTGAGES” ACT: HOW CONGRESS WILL CREATE THE NEXT CRISIS
Submitted by Tyler Durden on 09/06/2014
Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.
Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.
It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.
Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.
And we certainly can’t have that going on in the Land of the Free.
So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.
Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.
It’s as if Congress is now anti- ‘Truth in Lending’ and pro- ‘whatever the hell gets the money on the street’.
And of course, all of this comes at a time when mortgage rates are still near their all-time lows.
You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.
Isn’t paying 4% affordable enough? Nope. Not according to Congress.
So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.
This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.
They’ve unloaded their toxic assets to the US government and Federal Reserve.
They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).
After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.
So what does Congress do? They propose a new law to screw up bank balance sheets all over again.
It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.
===================================
Following is the gooberment summary and a link to the act.
“Access to Affordable Mortgages Act of 2014 – Amends the Truth in Lending Act to exempt from property appraisal requirements certain higher-risk mortgage loans of $250,000 or less if such a loan appears on the balance sheet of the creditor of the loan for at least three years. Exempts certain individuals required to make such reports from penalties for failure to report any appraisers reasonably suspected of failing to comply with the Uniform Standards of Professional Appraisal Practice, of violating applicable laws, or of otherwise engaging in unethical or unprofessional conduct.”
https://beta.congress.gov/bill/113th-congress/house-bill/5148
When interest rates are forced back to 10% this shit will stop.Of course the country will be in default on the national mortgage and the cities burning to the ground but they had good intentions.I can here it now .People screaming that interest rates are racist .Tool of the white devils used in the oppression of poor peoples.
Seems like a bail-out scheme [zero risk] to me.
There are a few hyper-emotional comment threads going on FB regarding the Mortgage Interest Deduction, and the push by some to end it. The people commenting on the thread are mainly white, half and half male and female, and middle-class by their own statements.
The stupidity on display is unbelievable. Almost down to the last man and woman, with maybe one exception in 100, they all believe that ending the mortgage interest deduction will make houses unaffordable and murder the middle class.
Never mind that the interest deduction benefits only those who benefit from itemizing deductions to begin with, which leaves out the bulk of the working population, for whom the standard deduction is higher than the MID.
The MID only benefits people affluent enough to have a mortgage of at least $200K, have many other deductions. It discriminates against renters, who do not get the benefit of the property owner’s deductions but DO pay property taxes through their rent. It discriminates against cash buyers and people who pay off their mortgage early. Worst of all, it provides incentive for people to assume unhealthy amounts of mortgage debt, and inflates house prices.
And even those who “benefit” from the taxes are saving an amount of money on their taxes that is trivial relative to the interest being paid. The MID is a cheat, a deceit created to make dumb, gullible people feel like they’re getting a benefit by paying and borrowing more than they should, and the only people who really benefit are lenders, homebuilders, and real estate agents.
The same can be said of the Access to Affordable Mortgages Act, which is created to generate more business for lenders suffering low volume in this moribund market, and inflate house prices.
I wish we had a Congress of monkeys rather than the bunch of vermin, snakes and pond scum we have now. No offense to real monkeys, vermin, snakes and pond scum, who like the rest of us, are just trying to survive.
Chicago999444 -The same can be said of the Access to Affordable Mortgages Act, which is created to generate more business for lenders suffering low volume in this moribund market, and inflate house prices.
Bingo…you can bet your guberminbt reamed ass that this fiscal cookie will crumble in the laps of the taxpayer while the banksters i.e. authors of this new and improved get a debt slave into a home Dream A ct will cash their chips at the Freddie Mae and Fannie Mac slush fund window , just like before …
Bush On Low Income Loans To Encourage Buying Homes
I made a comment and it fell down the rabbit hole I think. I am positive that it was extremely clever but haven’t the patience to recreate it.
Summing it up to this: We are listing our house this week and hosting an open house Sunday. I plan to sell my suburban house on one acre as soon as humanly possible and move myself, husband and two dogs, four chickens alive (8 in pressure canned jars) and an odd assortment of survival gear and guns to our little hideaway in the Ozarks. I do not care if the people who buy my home can afford it, can pay the loan back, can take care of the large lot or whether they keep their government contractor jobs just ten minutes away at charming Tinker AFB. I just want some schmuck loan officer to create about 150K fiat dollars (negotiable… what isn’t?) and hand it to me and my hubs, where it will be immediately turned into tractors and goats and other things of real value.
It is all about me and that is a fact Jack.
If this does not post correctly this time… I give up. Have a great day. I have to go stage another room.
I’ll post a few photos below so you can tell all your Okie friends what a bargain they could get!
Look! Up to 8 of my backyard chickens and the small pen and coop are optional!
[/IMG][/img]
[img][IMG
Bay windows and privacy porch on master bedroom even!
[img][IMG]http://i172.photobucket.com/albums/w17/marthaqaru
/Frontentryandsittingroombay_zpsac6966eb.jpg[/IMG][/img]
What a lovely home! Why, I can’t imagine anyone wanting to LEAVE it, can you?
[img][IMG
[/IMG][/img]
This is why neither of my two Pyrs are allowed to lick my face. Ever.
[/IMG][/img]
[img][IMG
[IMG
[/IMG]
[img
.html?state=copy[/img]
[img
[/img]
Well, I’m really THAT stubborn. Finally, figured out it is the “direct” one.
[img
[/img]
Oh, and those disgusting Pyrs frightened a pair of Jehovah’s Witnesses so badly they ran from my yard headed for the kingdom! The dogs are a valuable team in our family.
Maggie
The dog that’s sniffing the other dog’s balls …. what’s his name ……… bb? Nonanonymous?
You DO have a lovely house. Move the whole thing to Union County NJ … you’ll get $500 – $650k. Easy.
Jake and Jason are both purebred animals that do NOT sniff one another’s balls. Both are neutered and they lick each others remaining genitalia with regularity. That means, of course, that they NEVER lick me, though my son allowed them to lick his face all the time, assuring me that he’d heard a dog’s mouth was cleaner than a human mouth.
Nick and I have high hopes that we get some military officers recently transferred here from the northeast coast and they get in a bidding war with some Navy pilot recently stationed in California!
@Maggie, is that real fieldstone? Beautiful. There are some gorgeous farmhouses in this state made from fieldstone, I’ve always coveted them.
Why would we be shocked when this very program, instituted by Clinton, was where Barry got his first gigs and met his future handlers.
It was such a bloody success the first time, I’m sure this time will work out just as phenomenally!
Sharecroppers paying homage to China and WDC and the UN.
This is one more step on our way.
@TE It is… does that make you want to move into it? For a mere 150K, you can own every one of these stones and everything inside minus a couple of warm bodies. The builder was an enterprising entrepreneur in the 1980s, probably the last of his kind. He purchased this twenty acres in the middle of a cow pasture, built this house and another beside for his mother-in-law, then advertised lots for sale for custom built homes. After completing 15 additional homes, he sold this home to the people from whom we purchased it in 1992. Several of the homes in this neighborhood were built with this stone, as well, so I imagine he got a good deal on a large load of it.
There was a BBQ pit built of the stone in the back yard that we tired of using, so my husband customized the rock beds on the front with it. I am praying our first weekend of listing and open house is the last one. I don’t know how long I can keep this place clean with the two ginormous dogs insisting Oklahoma is too hot for them.
[img
[/img]