A Tide Of Foreclosures
The Sun News reports from New Mexico. “Do you want to sell a house in Las Cruces? A couple of years ago, you could have probably had buyers knocking on your door within hours of putting the home on the market. ‘Sometimes, before you could put a sign on, it would sell,’ said Louis Sauceda, owner of the Official Mortgage Team of New Mexico. ‘I was talking to an agent friend of mine and he said they now have to work a little harder to sell them.’”
“Fewer homes have sold than a year ago. In May 2006, 236 homes closed, reports Annette West, a Las Cruces real estate agent. Through May 29 of this year, that number dropped to 111.”
“Real estate agent Barbara Carrison said the fact that homes are taking longer to sell is not caused by a lack of home buyers, but an increase in supply.”
“‘It’s taking a little bit longer because there are so many more homes on the market at this point,’ she said. ‘There are not less buyers, but there are more houses.’”
“Barbara Dean and her husband recently purchased a home in Las Cruces. The couple moved to southern New Mexico from Scottsdale, Ariz. ‘From what I understood, the house was on the market for well over a year,’ she said.”
The Rocky Mountain News from Colorado. “Gov. Bill Ritter signed five bills into law, including one to license mortgage brokers, that supporters hope will stem the tide of record foreclosures sweeping the state.”
“‘We’re on pace to log another 37,000 foreclosures this year, which was up 30 percent from 2006, and that was up 30 percent from 2005. Those are just staggering numbers,’ Ritter said.”
“One of the best features of the new laws, said Erin Toll, director of the Division of Real Estate, is if a broker has a license revoked, he or she can’t get it back until they’ve repaid the consumers they ripped off.”
“Some experts also questioned whether the new laws will do much to slow the number of foreclosures.”
“Peter Lansing, president of Universal Lending, who supports the new laws, said only a housing market recovery can end the foreclosure crisis. ‘What we need are rising housing prices and more jobs,’ Lansing said. ‘Only market forces can stem the tide of foreclosures, not legislation.’”
“Later this summer, rates could rise to around 7 percent, said Lou Barnes, a principal of Boulder West Financial Services. ‘A lot of adjustable-rate mortgages are resetting to 7.5 percent and 7.75 percent,’ Barnes said.”
“Rising rates, combined with a flat housing market, could increase the number of foreclosures in the metro area, he said. Foreclosures already are at a record level.”
“‘The new lender term is ‘jingle mail,’ Barnes said. ‘They call it jingle mail because the homeowners are mailing their keys back to their lenders.’”
“The biggest weakness in housing prices in the Denver area, and where most of the foreclosures are occurring, is with lower-priced homes, said economist Michael Kone, owner of Housingmetrics Inc. in Boulder. ‘There is a lot of weakness at the bottom end.’”
. “A report shows a 35.4 percent year-over-year decline in Denver metro new home sales in April. Andrew LePage of DataQuick, said last month’s Denver new home sales total is the least it has on record for an April, with only 830 sales, compared with 1,285 in April 2006.”
“‘The Denver region continued its yearslong stretch of flat housing prices in April,’ according to LePage’s report. ‘The median price paid fell just shy of the year-ago mark for the sixth consecutive month as sales eased to the slowest pace in at least nine years.’”
The Denver Post from Colorado. “Two more participants in a mortgage-fraud conspiracy that devastated a neighborhood with foreclosures were sentenced to federal prison terms.”
“Taiwan Lee bought three homes in Villas at Cherry Creek while he was wanted for violating parole. He managed to buy two more after he was jailed, borrowing a total of $3.1 million for five villas acquired with 100 percent loans.”
“U.S. District Judge Edward Nottingham sentenced Lee to 30 months for serving as a straw buyer in a scheme that allegedly purchased 17 homes at inflated prices and took $2.1 million from the excess proceeds.”
“He also sentenced Talita James, a convicted cocaine dealer who bought two villas in one day for $1.1 million, to 27 months for her purchases and for committing a crime while on supervised release from federal prison.”
“To date, eight people have pleaded guilty to felony charges in a continuing federal investigation. Developer Timothy Todd DeNeui and Jerrold Minney, a real estate broker who helped sell the villas, have denied knowing the buyers were engaged in a fraud conspiracy.”
“Real estate agent Barbara Carrison said the fact that homes are taking longer to sell is not caused by a lack of home buyers, but an increase in supply.”
“‘It’s taking a little bit longer because there are so many more homes on the market at this point,’ she said. ‘There are not less buyers, but there are more houses.’”
I’m at work and actually LOL’d at that.
beat me to it
realwhores= real stupid
beat everyone to it….
the sheer magnitude of the stupidity of that statement is absolutely astounding.
“the sheer magnitude of the stupidity of that statement is absolutely astounding”
And just when I thought nothing more stupid could be uttered by someone in real estate. I can’t wait for the next, even more stupid, statement, a new, all time, bottom to be established.
I never paid much attention to real estate but I never imagined it attracted so many idiots at so many levels. It has to be a magnet for morons.
Like it has been said “You can’t fix stupid”.
So many overpriced crapboxes and so little time to look at them all.
It’s enough to drive a potential homebuyer to just give up and quit looking.
I nominate Barb as moron of the month, though the month is still young.
The sky is falling, but there’s so much sky to fall down on us, so it’s taking a little bit longer for people to realize this…
Barbara Dumbass…. buyers buy…. lookers realize there are too many homes for prices not to fall so they wait.
According to this dingbat if I look up a stock price on Yahoo finance I am a shareholder.
Morons.
I was just about to post that quote. That really cracks me up.
ohhhhhh…….so THAT’S what the statistics that call out 25-40% reductions in sales in most areas mean, Barbara. Got it.
Maybe I’m stupid, but the irony still escapes me. Whats’ wrong with the quote?
You asked what’s wrong with:
> the fact that homes are taking longer to sell is not caused by a lack of home buyers, but an increase in supply. …
> ‘There are not less buyers, but there are more houses.’
Home sales have decreased by double percentages. That must due to a lack of home buyers, because the other possible reason, a dwindling supply, does obviously not apply. That more inventory leads to further increase of times on the market is not in doubt, but this realtor tries to hide the fact that buyers are lacking, probably from other potential buyers who should pay her bills.
Thanks, Peter. From the quote it wasn’t obvious that the sales volume declined.
You aren’t stupid Max. This crap is repeated so often it can be hard to spot it after a while. The real crime isn’t what this idiot said. The real crime is our news media has an ENDLESS SUPPLY of idiots just like Barb they can get quotes from. How often does the media ask Ben what he thinks? He’s been far more right than these morons.
The media doesn’t want Ben’s opinion because it will piss off their advertisers. So when you read these articles understand that. These “reporters” are dialing people to get quotes their advertisers like. Say some things an advertiser doesn’t like and your name goes off the active list of people to quote. This is an established fact.
If Ben said tomorrow that he sees a recovery in housing later this year the slime would be beating down his door for quotes.
Regardless of what’s happening with inventory, there has been a sharp reduction in recorded sales. This means less people are buying. The problem isn’t more inventory, it’s less buyers. Inventory isn’t the cause….it’s the effect.
“‘It’s taking a little bit longer because there are so many more homes on the market at this point,’ she said. ‘There are not less buyers, but there are more houses.’”
NOT TRUE.
~Misstrial (88007)
And the reason there are more homes on the market is because there are fewer buyers, Babs.
Cherry Creek and Highlands Areas have appreciated by 25% in a year…the area is surrounded by getto and a gang crime problem that Denver wants to ignore, especially with the Democratic Convention coming to town in a year.
How fun is it to have to live with alarms and gates…reminds me of when I was in Manila at the home of an American working there in the 80’s!
“Peter Lansing, president of Universal Lending, who supports the new laws, said only a housing market recovery can end the foreclosure crisis. ‘What we need are rising housing prices and more jobs,’ Lansing said. ‘Only market forces can stem the tide of foreclosures, not legislation.’”
At least this guy realizes that legislation today will not fix the bad loans of tomorrow. However, keeping that thought in his head is using up all his available brain cells leaving none left over to critically think about WHY house prices are falling, and instead blames them for the foreclosure explosion.
The real beauty of this is the Yunesgue comment here:
“What we need are rising housing prices and more jobs,’ Lansing said. ‘Only market forces can stem the tide of foreclosures, not legislation.’”
Right….. that is what we need, loosen up that helmet there donkey.
What he doesn’t seem to grasp is that “market forces” are what’s bring prices back down where they belong. Funny how he interprets that same phrase to mean “real estate always goes up”…
What we need are rising housing prices and more jobs,’ Lansing said. ‘Only market forces can stem the tide of foreclosures, not legislation.’”
If you just wish hard enough for housing prices to go up, then I am certain they will Mr. Lansing……
I just closed my eyes and said “I want a cookie” I opened them and waalaaah…I had a cookie this is easy and fun!
Me too, but mine was “I want a $350K a year job”……….
Come to Colorado, we can all work the ski lift together and get rich!
When I made snow at Keystone several years ago, I was one of the highest paid schmucks on the mountain - at $9.50 an hour.
so where do you live on $9.50 an hour in a shared Dorm room?
LOL, well, I rented a ROOM from my own SISTER, for $400 per month. Employee housing that was nasty, smelly, shared dorm room style was more expensive than that. Most Vail Resorts (which included Keystone) employees made $7 an hour if they worked on the mountain, and office employees usually made $9 - and this is with jobs that “required” a college education. It was, and is, a joke. Especially considering that the least expesive resort under the Vail umbrella was, even then, $45 per person, per day. Employees had to pay to ski, too. Worse than that, they froze wages for several years around Y2K because they “couldn’t afford it”. Yet the CEO got multi-million dollar bonuses those years (I think they averaged $16MM per year? More than enough to give every employee a 35 cent per hour raise). I guess I’m ranting, aren’t I?
Comment by Patricio
2007-06-05 13:05:48
I just closed my eyes and said “I want a cookie” I opened them and waalaaah…I had a cookie this is easy and fun!
Thanks for the humor. I think the word is “voila,” by the way, but I like your version.
We’ve had endless newspaper quotes on this site from people who actually belive they deserve anything they want. They obviously believe those “I’m worth it” hair dye commercials.
“Real estate agent Barbara Carrison said the fact that homes are taking longer to sell is not caused by a lack of home buyers, but an increase in supply.”
Cue the Aflac duck staggering out of the barber shop!
I know, I had to read that over a couple of times before I realized she was serious.
“I can’t really remember the names of the clubs that we went to.”
- Barbara Carrison, real estate agent, on whether she had visited the Parthenon during his visit to Greece
You’re making that up.
LOL
This is a true quote from……………. Shaq! That was one of my favorite quotes of all time. He was in Greece with the Olympic Basketball Team and was asked about visiting the ruins. DUH!!!
What is it: higher prices and fewer foreclosures but no buyers or lower prices more foreclosures and more buyers? Can’t have both.
Forgot to add the quote: “Peter Lansing, president of Universal Lending, who supports the new laws, said only a housing market recovery can end the foreclosure crisis. ‘What we need are rising housing prices and more jobs,’ Lansing said. ‘Only market forces can stem the tide of foreclosures, not legislation.’”
“What is it: higher prices and fewer foreclosures but no buyers or lower prices more foreclosures and more buyers? Can’t have both. ”
I think I have a headache.
It’s higher prices, fewer foreclosures, more buyers, a cookie, and a $350k job.
“Taiwan Lee bought three homes in Villas at Cherry Creek while he was wanted for violating parole. He managed to buy two more after he was jailed, borrowing a total of $3.1 million for five villas acquired with 100 percent loans.”
Another classic!! Somehow I have the feeling you can multiply this guy x5000 in the SF/South bay area CA.
Now he’s got a really “big house.”
Nice…
Steven, I agree with you. The whole mortgage fraud thing is so pervasive and has added so much to the froth. Many people unknowingly bought with hundreds of thousands of dollars added to their “market value”, because 1000’s of fraud deals were done at $200-300,000 in cash back sales.
The market has a 10-20% fraud premium, before you ever get to reality and affordability issues. It will bring down the house like nothing else.
If you wonder who actually lent these people this money, browsing on over to ml-implode we see a trend in the recent news:
2007-06-04: Heritage Plaza Mortgage - Wholesale, Alt A
2007-06-04: Lancaster Mortgage Bank (LMB) - Wholesale Alt-A
2007-06-01: No Red Tape Mortgage - Wholesale Alt-A
2007-05-25: Pro 30 Funding - Wholesale; Mostly Alt-A
So I guess you can do stated criminal records and outstanding warrants.
“He managed to buy two more after he was jailed…”
I’ll bet he even claimed that they would be owner occupied. Shows how on top of things the lenders are.
when do you all expect lots and unimproved land to hit bottom? I allways assumed land lost value much faster than SFH, but this crash seems to have so many contributing factors I’m not sure what to think anymore.
I’m thinking land bottoming in the next 12 motnhs or so, and SFH a year after that? thoughts?
ajmstilt,
You might want to let somebody else do the thinking around here.
fair enough, that’s why i’m asking.
While I don’t know what i don’t know I don’t know, I know what I know, I don’t know.
Wow, could you be a bigger douche? Do you have any thoughts, smart guy? If not, shut your piehole.
Not nice…
I’ll take a shot at it. I think it’ll take quite a bit longer. Check out the Credit Suisse chart on ARM resets to get an idea of what is still in store (those resets will lead to more foreclosures, which will depress prices). The run up was 5 or 6 years (others may say longer), and the decline will likely take about the same time. Considering that the market peaked in summer 2005 (later in other places), we’re probably looking at the bottom (for house prices) somewhere around 2010 or 2011 (land will probably bottom sooner - I’m just not sure how much sooner). JMHO (predicting timing on these things is pretty much guesswork).
Land prices are hard to fathom. On the one hand, builders are dropping their options left and right and new construction is slowing… any profit the builders make now will be based on selling smaller houses (less construction) or paying much less for land. Also, traditionally land prices fall fastest in recession. So I would guess that land prices should be falling like rocks… but…
I have heard from builders that landowners have been slow to drop prices (they say that it is because land owners think the builders are flush with cash from the bubble, but that argument does not make economic sense)- perhaps land owners think they can weather the downturn and sell their land later, so could be pulling it out of the market. Washington State land is still outrageously high, but BLM has stopped sales in (IIRC) Arizona due to lack of interest. I think Central Valley CA land prices have taken a beating due to price renegotiations with builders. Where I am lots way too high still. All in all, I think land is acting like houses- prices are not falling fast enough, but inventory is growing and sales are slowing.
I think the carrying costs on land are somewhat low, unlike houses. So those who want to wait, wait. But if you’re totally not going to use it, might as well sell it for a profit. (And anything bought more than 5 years ago land-wise will probably still sell for a profit).
I’ve seen reductions in lot/land asking prices here in Fauquier County, VA, and no takers. I’ve also seen a handful of sales to the wealthy who want to buy a prestigious property.
Old Denver Omelette: Ham, diced onion and red & green peppers.
New Denver Omelette: Fraud, dishonesty and foreclosure.
more toast?
Your real estate investments always become toast, it comes with the omelette.
A question for the house. What are the usual terms for ARMS? What index (LIBOR, T-bills, 11th Dist. COF) do they usually use and what spread to the index?
Thanks in advance for any info.
Generally it’s a waste of breath to give thanks in advance. Why would you want to do that? What’s wrong with thanking people after they do something for you?
oh heck what’s wrong with thanking before and after? It’s never wrong to be extra courteous, Lord knows most people aren’t at all.
thanks in advance for reading
Welcome to you, douche #2 on the day. It’s common courtesy to thank people once in advance, instead of thanking them all separately later. It reduces the total number of posts on the board. But I’m sure a genius like you was already aware of that.
Ha ha ha! I was too late.
It’s not “common courtesy”. Show me an etiquette (or netiquette) reference that says so. It’s ignorant, lazy and/or presumptuous. For receipt of what else do you offer thanks before getting said object or service or an assurance to get it? Highly illogical. And what if you don’t receive the requested item(s) that you have already thanked for? I notice that none of you anti-douches have bothered to answer the question posed. If that remains the case then the thanking will have been in vain. Finally, to address simi’s point, one doesn’t have to choose between thanking everyone once in advance or thanking them separately later. What about thanking everyone once later to end the thread? Surely you’ve seen this being done.
One more peeve. Thanking someone is indeed a courteous action; as such it should be used respectfully and directed to the right person(s). I find this blithe direction of gratitude towards unknown entities a degradation of the entire concept and a choice of convenience rather than courtesy. Why don’t I just thank the whole readership for everything I will ever learn on this blog in the future and be forever removed from having to do it again individually?
Lesser Fool:
Some posters are polite to thank in advance because they know that they will be occupied with other tasks and may not be able to check on anticipated responses until some time later.
Therefore, they offer their gratitude in advance as a polite gesture. Internet etiquette: TIA = Thanks In Advance
~Misstrial
Hey simi.uber.alles, here’s another douche for ya. Go get him!
An exhaustive overview http://en.wikipedia.org/wiki/Adjustable_rate_mortgage
A good-quality ARM is fixed for 5-7 years, after that it’s LIBOR or US prime + 2-3% margin. The 2-year fixed ARMs that the folks around the country were loading up on are a complete piece of s.
I had an ARM 14 years ago. Started 1.5 % below below market at the time (5% vs. 6.5%). Indexed to 1-year T-Bill + 3%. Fixed first 3 years at 5%, then could move 1% per year, max 5%…. So I could have been hit with 5%.
After 5 years, I was at 7% and could refi to 6%, so refi-ed to 30 year fixed. I got lucky.
My future sis-in-law has an sub-prime int-only, ARM starting at 8%. Can jump to 11.5% at first reset at 2 years (Oct 2008). Then adjusts every 6 mo to LIBOR + 6.75%… so 12.15-ish based on the LIBOR now???
At least she won’t be throwing money on rent.
But truthfully, (and I am being serious here), those loans to subprimes can be re-fi’d as non-subprime if the borrowers never misses a payment and improves their credit score before the reset. There was some half-truth to those LOs lines. What the ‘bail out’ unwittingly may have caused is for more of those dopey subprimers to miss payments thinking Uncle Sam was coming to rescue- thereby further reducing their chances of re-fi’ing out of their subprime into a Alt-A because of their stellar payment record.
those loans to subprimes can be re-fi’d as non-subprime if…
Um, I think the house has to be worth more than the loan balance, too.
“Fewer homes have sold than a year ago. In May 2006, 236 homes closed, reports Annette West, a Las Cruces real estate agent. Through May 29 of this year, that number dropped to 111.”
“Real estate agent Barbara Carrison said the fact that homes are taking longer to sell is not caused by a lack of home buyers, but an increase in supply.”
I’m sorry, but the MSM needs to step up and do its job. Sales are off by over 50% and she gets away with making her statement that it’s not “a lack of home buyers, but an increase in supply.” If there were still plenty of buyers, sales would be on par with last year.
No wonder we’re still in the denial phase -);
“I’m sorry, but the MSM needs to step up and do its job.”
Um, I think they are doing their JOB. They are being paid (advertisers) to publish disinformation. Everyone should know by now to look for the truth outside of the MSM.
Regardless of Polls…Rudy is still #1 on the Republican side…according to the MSM. They are having a much harder time convincing us of anything thanks to the mass middle, who uses the Internet and we know the truth. Forget the truth on MSM, just drooling morons scampering to the TV to find out about Paris Hilton or some pretty lost coed who disappeared…while the ugly or minority ones go lost with out a mention. MSM is the opiate of the cube working zombies and the clueless masses, what the public doesn’t know makes them the public. The formula is the same Fire/Scare/Sex/Heartwarming/Car Crash that is what you will see on the TV tonight…guaranteed!
Unfortunately, the location, location, location of RE also applies to the media. Various media markets only report what’s going on in their area and disregard national trends… unless of course if they can highlight how their area is different (read Better when it comes to RE) than another.
From the Rocky Mountain News piece:
SB 203, MORTGAGE BROKER LICENSING
• Sponsor: Marshall and Groff
• Summary: “Brokers must be licensed by the Division of Real Estate and must get adequate training, testing and continuing education and are prohibited from engaging in 24 specific activities, including fraud and conflicts of interest. A broker who has a license revoked for violating this legislation would not be eligible to be reinstated unless he or she provides full restitution to individuals he or she has harmed”.
Realtors have been licensed for some time and it didn’t do squat to stop their shenanigans.
I tell you what though. If I was a broker in Colorado, I’d make damn sure those that came to me would be able to pay. If I didn’t like an appraisal (even a legit one), I wouldn’t approve the loan.
If people think this is going to help their home prices in Denver, they are going to be in for a shock. I bet their home prices are going to fall faster than they have been. Probably right down to the affordability range within 1 year (you know 2.5x income max).
I bet their home prices are going to fall faster than they have been.
I agree. New regs will cause liquidity to dry up even further until the mortgage brokers figure out the new regulations.
On the plus side, the state that has the most precipitous drop might be the first to see increases. :-/
That would be about 125K (2.5x). I think that the last time the median price was that low was in the late 80’s.
If I’m not mistaken no license was required to do mortgages in Colorado ex-convicts were doing loans there IIRC. I do like the aspect of having to pay back the amount being defrauded but I think it should be x10 and I’m also curious as to how they are going to determine the amount defrauded. Let’s say the amount is $5000.00 worth of closing costs. Go to bank get 5k and your back in business it has to have more teeth than that I’m sure.
May the foreclosures and frauds of a thousand FBs infest all the unethical brokers.
For Phillygal, of course!
May a crazed mongoose run up the hoop skirt of your criminal MB’s sister.
May a horde of angry mortgage bag holders transfer their worthless mortgages to your portfolio!
Not so, Subprime breath…
Logical statement time:
licence=monopoly=higher wages for brokers
licence != higher quality (for non-geeks, that is ‘not equals’)
licence = $$ to univ. for pointless continuing ed. credits
With all this fraud on the market, I wonder what is the true values of the homes, I bet most would be shocked how taken they were. This would make an honest and forthright appraisers (all 3 of them) job very difficult I bet to drill down for the truth.
That’s really hard to say because there is fraud in every market. Even in the downtimes there is fraud even moreso than now.
There was an A.P. story last Friday about the slow down in housing prices in three Montana cities. The data was from the Office of Federal Housing Enterprise Oversite. Great Falls had the largest increase of 2.5%. Billings less than 1%. Most ominously Missoula was flat, no increace. Last Friday I was making jokes about Regina Saskathewan and their high priced condos, Great Falls is in the same league. Great Fall hasn’t had a dynamic economy in years, it’s a place were you are from, not were you go to. The move Thunderbolt and Lightfoot was set in Great Falls. Not only does Great Fall look about the same as did 30 years ago in the movie, the movie is very close to depicting the way Great Falls actually is . Billings has a far better ecconomy, dependent on oil, coal, railroads, plus serving a large region. It still only a place you live because have a job there. MIssoulla is different, it’s the type of city you would expect in Montana. Surrounded by mountians, at the end of the Bitteroot Valley, just south of Flathead lake. It’s the site of a liberal art school, The University of Montana. It’s downtown is well known for it’s night life. Missoula is the type of town you would want to move to and pay a lot to live there. Yet prices are flat. The story quotes Paul Polzin from the U of M, he says the usual drivil about prices not “likely” to decrease. Nothing about the ARM time bomb that is ticking away in any market with flat prices.
Good ole NY Times
“But in a stark reversal, it’s now clear that people who chose renting over buying in the last two years made the right move……recent home buyers have faced higher monthly costs than renters and have lost money on their investment in the meantime. It’s almost as if they have thrown money away, an insult once reserved for renters.”
Chuckle…….snicker……heh heh……
A lot of people on this board argued against regulation but it is obvious to most that some basic consumer protections are warranted. And these new laws in Colorado will go a long way towards making the market sane again.
Wasn’t training for all of this type of shennanigans covered in kindergarten during a game called “Muscial Chairs”?
“‘The new lender term is ‘jingle mail,’ Barnes said. ‘They call it jingle mail because the homeowners are mailing their keys back to their lenders.’”
Are the lenders reading here? “Jingle mail” has been used on this site for quite some time. First I’ve seen it in the MSM.
Nah, it’s been on MSN Money for awhile… I forget who coined the phrase.
having quietly exited the mortgage business over the past two years, i can attest that 90% of the business written by the brokerage community fell into three categories; high loan to value, stated income and investment properties. a documented loan with creditworthy borrowers and down payments were unheard of. given the record inventory already on the market, the reo inventory getting ready to hit the market, 100,000 families (foreclosed) that won’t be buying a house anytime soon, stupid money being shut down and resetting mortgages that can be rewritten, i can’t see anything but ugliness in colorado for quite some time. that said, we’re just a year or two ahead of the pack, but i would suspect we’ll be the model for what will happen on the coasts. imho.
“Gov. Bill Ritter signed five bills into law, including one to license mortgage brokers, that supporters hope will stem the tide of record foreclosures sweeping the state.”
Do they mean “…supporters hope will stem the tide of mortgages made in the future from being foreclosed”? In other words, are they trying to stem current mortgages from foreclosing (don’t see how this is possible) or stem the creation of future mortgages that could lead to foreclosure?
If it’s the latter, isn’t current regulation enough? Do we really need more regulation or just the enforcement of current regulation?
We need lots and lots of new regulation in the industry. Obviously what we have now doesn’t work. The more the better IMO.
MAN almighty I am ahead of the curve……Make brokers pay back their (commissions) and victims if they go in foreclosure say within 2 years
sounds fair to me……
One of the best features of the new laws, she said, is if a broker has a license revoked, he or she can’t get it back until they’ve repaid the consumers they ripped off.
“Giving money back to the government is good. Giving money back to the victims is great,” Toll said.
Like it has been said “You can’t fix stupid”.
A quote from Frank Laydon (former Utah Jazz coach when they drafted 7′4″ Mark Eaton {I know I am dating myself}), “You can’t teach height”. In the Jazz case, that worked out well as Mark Eaton became a pretty good basketball player as they were able to teach him how to play the game, but he had the natural height. Opposite of the quote from this asshat of a realtor.
Just a not: I live in Riverside, Ca. and at my son’s elementary they had a faculty meeting, where the teachers were told to go easy on the kids…because their parents are losing their homes and the kids may be feeling depressed, etc.
Yikes!
Now that’s a killer anecdote. Thanks.
Anyone would be depressed upon discovering that his/her parents are idiots.
I think the new Colorado laws are great. Here is the summary:
HB 1322, MEASURE TO PREVENT MORTGAGE FRAUD
• Summary: Mortgage brokers and others involved in real estate transactions must act for the benefit of the borrower, including making reasonable inquiries into the borrower’s financial situation and using best efforts to obtain a loan that takes into consideration the borrower’s situation.
SB 85, PROTECTS CONSUMER REAL ESTATE TRANSACTIONS
• Summary: Prohibits brokers from trying to influence the judgment of a real estate appraiser through coercion, intimidation or compensation.
SB 203, MORTGAGE BROKER LICENSING
• Summary: Brokers must be licensed by the Division of Real Estate and must get adequate training, testing and continuing education and are prohibited from engaging in 24 specific activities, including fraud and conflicts of interest. A broker who has a license revoked for violating this legislation would not be eligible to be reinstated unless he or she provides full restitution to individuals he or she has harmed.
SB 216, MORTGAGE LOAN ACTS PRACTICES
• Summary: Requires brokers to act in good faith and deal fairly, including: not to recommend the borrower enter into a transaction that “does not have a reasonable tangible net benefit to the borrower, considering his circumstances; to make reasonable inquiry into the borrower’s financial circumstances; not to make loans where there is no reasonable probability of repayment.”
All of these things make complete sense, and more importantly, would have helped stop a lot of the fraud. Who does a stated income loan under these circumstances? I wouldn’t.
You have a lot to learn about reality…