HR3915 will equate to less financing options for the consumer and make it much more difficult for the consumer to obtain credit.
United States of America (Press Release) November 2, 2007 --
Consumers will soon have Congressman Barney Frank to thank for higher cost loans and the ability to qualify should HR3915 pass. HR3915 is an anti predatory lending bill, and if passed, will make the payment of yield spread premium to mortgage brokers illegal.
Mortgage brokers often write loans for clients so they do not have to pay lending fees or loan costs. There are real costs to doing a loan, but the costs can be paid through the yield spread premium paid to the broker. This results in a no to low cost loan to the consumer. Retail mortgage lenders will still be able to charge origination points as well as continue to make their pockets fat through service release premium. The consumer will soon be forced to deal directly with the big banks. It is interesting that the rates posted in retail bank branches are almost always higher than those offered by the wholesale broker and have a point or more associated with them. HR3915 will also not allow the assistance of closing costs by crediting a portion of the yield spread premium back to the client.
HR3915 will equate to less financing options for the consumer and make it much more difficult for the consumer to obtain credit.
HR3915 is going to vote on November 8th. Please read HR3915 by going to http://www.house.gov/apps/list/press/financialsvcs_dem/subprimeleg.pdf and call your congressman or congresswoman and say no to HR3915.
There is also an online petition that can be signed by going to http://www.PetitionOnline.com/HR3915/
Mortgage brokers often write loans for clients so they do not have to pay lending fees or loan costs. There are real costs to doing a loan, but the costs can be paid through the yield spread premium paid to the broker. This results in a no to low cost loan to the consumer. Retail mortgage lenders will still be able to charge origination points as well as continue to make their pockets fat through service release premium. The consumer will soon be forced to deal directly with the big banks. It is interesting that the rates posted in retail bank branches are almost always higher than those offered by the wholesale broker and have a point or more associated with them. HR3915 will also not allow the assistance of closing costs by crediting a portion of the yield spread premium back to the client.
HR3915 will equate to less financing options for the consumer and make it much more difficult for the consumer to obtain credit.
HR3915 is going to vote on November 8th. Please read HR3915 by going to http://www.house.gov/apps/list/press/financialsvcs_dem/subprimeleg.pdf and call your congressman or congresswoman and say no to HR3915.
There is also an online petition that can be signed by going to http://www.PetitionOnline.com/HR3915/
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