New Mortgage Rules Are Bullcrap

Timing. 10 years ago, if you had a pulse, you could get a mortgage, which is why we're in the mess we're in. Today, they're being extra-super-careful not to make the same mistake twice until everyone forgets again, so they're erring on the side of caution, which unfortunately means a lot of deserving people (such as you) are getting the cold shoulder. Yeah, it sucks, and the reason why sucks, but that's unfortunately the way they roll nowadays.

 

Not to worry. The same crooks who got rich off the sub-prime debacle will figure out how to get rich off the new rules. Ordinary folks only exist to be squeezed dry. That's how capitalism has always worked, and likely always will.

Actually, what you are coming up against is the definition of the crisis: The economy is in the toilet because people who want to build businesses cannot get credit, because the morons who gave all their money away to the sub-prime crooks are now afraid to give loans to anybody.

 

I'm self employed myself, but qualified for a mortgage by showing my investment portfolio, as well as my previous year's tax return. If I had to, I could pay for the whole mortgage with my reserves...but that would be pretty tight.

 

why does it have to be fanny mae?

 

^^^ Did any of these customers -- or you -- lose anywhere near as much in interest savings as was gained from the higher paying career status that interfered with refinancing attempts?

Sounds to me that the glass isn't half empty, it is 90% full.

Each time I considered refinancing, it didn't quite make sense, so I just threw the expected fees and more at the principal. The whole mortgage ended up evaporating long before the Dot.Com bust caused the tech stocks to do the same.

 

Wife has a W-2 job? Simple, have her refinance the house, That is what we did, my 1099 income was not considered. We pay less per month on our 15 year mortgage than we did on our 30 year mortgage.

 

Just one note, don't forget the ignorant irresponsible politicians trying to curry donations and favor with the banks that took taxpayer money. Then gave those monies to greedy banks or forced it upon other banks who didn't want it with few or asinine regulations as to what they were supposed to do with it. Should have let them go bankrupt, would have saved taxpayers billions.

 

BB, can you qualify by having a larger down payment ?
I suggest you also look into home equity loans, they might have different underwriting criteria.

To your rant: 'independent contractors' abused the mortgage credit system during the bubble. You are paying the price for past fraud.

 

And if you had lost your job because the economy collapsed around you, what would your pontificating be then ?

 

I have the ability to originate mortgages, and the rules enacted since January 1 are completely onerous not only on the borrowers but also on those trying to help people refinance. Where I used to get 9 out of 10 applications funded (and that's with my REFUSING to steer people into the predatory loans even at the oft-result of losing customers to the predators), now I'm lucky to get 1 out of 10 to funding. That includes myself...my own mortgage which I could not usher through the process remains at 6.75%. The few mortgages I CAN usher through require my going back to the borrower multiple times for 'one more piece of paper' which the lenders suddenly and out of the blue require (in their attempt to circumvent the borrower's perfect job, savings, credit score, loan to value ratio and all the rest.) The thieves at the top benefited greatly from the pre-melt down, but it's the little peons at the bottom paying the piper for the highway robbery of the few in the preceding years. Corporate America...love it or leave it or get the corporations' rules rewritten.

 

We went a different route - we got a HELOC through our credit union that paid off our remaining mortgage at another bank, and which has a MUCH lower interest rate (about half - from 8% to 4%). And, because it's a credit union, there were no exorbitant fees involved.

In the 8 years remaining on our mortgage, going this route will save us about $7K. (number plucked from memory, is probably wrong)

 

I only want a $55K note to buy another house a street over... they are saying I am low in the window... whatever that means...

 

I am going through the bolded parts right now. Buying my first house, got 3.75% locked in all was good. Every day or two they keep requiring something extra. Notes and letters of explanation for all sorts of random crap. Then they surprised me with "you must have $xyz in the bank at time of closing for reserves". Then the never ending bank statements to prove where all this damn money comes from. Doesnt help that some of this money is from out of the country either!

It is starting to get rediculous...

 

Rae, HELOC or HEL ? LOCs are variable loans

 

It is a HELOC... yes, it is variable, but we can lock it in as a standard loan at any time, should the rate go up.

I do love the credit union.

 

i would lock it now.

 

As it was, the financial meltdown saved me huge amounts of income tax.

Lost job. Little income. No taxes!, in fact I achieved a negative tax bracket last year.

I'd rather have a higher tax bill.