3 comments

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  Brooks Hadlin

  11 months ago

  Another much-needed dose of reality from The XBroker. If I'd ready this anywhere else, I probably wouldn't believe it.
  
  Pass the KY. Did you get the flavored kind this time?
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  MataHariBoniJovi

  11 months ago

  Very nice. Did you have a shot of that circle jerk for YouTube? Anyway, the only thing that I would like to expand on is the notion of Yield Spreads, how they are disclosed and what effect they have on a loan.
  
  I think charging YSP is fine when the client can't afford the cash requirement to close the loan, IE; has no money for closing costs. In these cases, I see no problem with charging a little more... but I think there is a disparity in the amount borrowed to the amount charged. e.g.; I borrow $300,000 and you charge me 6%. I don't have money for closing costs (total of $3000, or 1% of the loan amount) and you are going to charge me 6.5%? A full half point for $3000??? Sounds a bit high to me. If it were just on the $3000, I am not offended, but on the WHOLE loan amount? So, to borrow $3000 I will pay about $1500 more per year for 30 Years??? Now, I am saying "WTF"?
  
  This is an area where consumers get "confused". Really, they are just uninformed and many don't/can't "get it". Therein lies the reason for HR3519's YSP removal idea.
  
  The idea is stupid because, as you say, "day late, dime short", so to speak. The banks have already made their beds and you can hardly get a conforming loan, these days, anyway.
  
  That is how it always is with the government. It's like there are whispers in the halls of congress by the lobbyists... shhhh... "just let us make some money, we'll police ourselves, we promise... Listen, John, Barack, I will take care of you on this, I promise.. Next campaign, we'll donate heavy behind you... what do you care, anyway? It's someone else's money. All you need to do is LOOK LIKE you're doing something about it, you know that is how people vote. Just tell them what they WANT to hear. So, just turn the other way for at least a year and we'll bail you out of this, don't worry." Then, you guys can go into your committee rooms and argue, trying to make the other side look like THEY are the problem. Don't you feel better now, Mr/Ms congressman? Nice puppy... (pat pat pat)
  
  and people wonder why things don't get done in washington.
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• 

  REALonomics

  11 months ago

  Did someone say "post mortem autopsies?" Did someone say, "Let them spend 60 days cranking out logical, practical, enforceable policies coupled with easy to read documents?"
  
  What would the Fed be if that was the case? Let's remind ourselves of two important realities. The task of every elected official is re-election or the perpetuation of self-exaltation. Then, let's remind ourselves that nearly 90% of all bureaucrats and politicians have law degrees (you can deduce what you like from this).
  
  Finally, may I respectfully suggest we change this statement:
  
  "Let them spend 60 days cranking out logical, practical, enforceable policies coupled with easy to read documents. "
  
  To this statement:
  
  "Let them spend 6 months interfacing with consumers cranking out loan approvals and explaining in detail all of the fine print, disappearing ink and mumbo-jumbo contained in today's mortgage documents and then, finally, make them accountable for all actions."
  
  Nice work Xman!
  
  REALonomics
  www.REALonomics.net
  reply