In the past year the government has enacted several new rules to protect consumers and stop appraisal coercion by evil bankers and brokers.
HVCC (the appraisal code of conduct) has already forced many experienced and qualified appraisers out of the business. It has also helped to propel home values lower by allowing Appraisal Management Companies to seek out the cheapest appraiser (inexperienced, out of area appraisers who have no knowledge of the local market) so they can fatten their profits.
The new Good Faith Estimate has certainly helped to confuse more consumers when they try to compare financing charges for purchasing or refinancing a home.
Of course, the lenders and regulatory agencies (Fannie, Freddie, FHA) have helped too by tightening up on their financial requirements to purchase or refinance.
All this consumer assistance hasn’t been totally successful. Consumers are still slipping through the cracks.
WILY, CUNNING AND DETERMINED CONSUMERS ARE STILL MANAGING TO PURCHASE OR REFINANCE HOMES AT EXTREMELY LOW MORTGAGE RATES! THIS IS TOTALLY UNACCEPTABLE!
If the government really wants to help consumers, they could force everyone who wants to purchase or refinance a home to take a two month training course so that the consumer clearly understands how the government has helped them. Consumers should have to pay for this training and a final test. The training and test money could be used as a much needed income stream for further government housing assistance.
The government could get Homeland Security involved as well. By requiring all consumers to provide fingerprints and hair follicle samples we might well prevent a covert terrorist cell from purchasing a safe house. And if Homeland Security coordinated with the local DMVs to collect unpaid traffic/parking tickets from consumers attempting to purchase or refinance, another income stream would be generated so that local politicians could go on more Global Warming junkets to exotic places.
Lenders and regulatory agencies could also assist consumers by demanding more skin in the game. Instead of a 20% down payment, how about a 50% down payment?
I’m confident that, working together, we can force all of the greedy and diabolical loan officers, appraisers, inspectors, real estate attorneys, homeowners insurance agents, etc, out of the financing business once and for all. We can shut down the housing industry altogether. All we need is a little more “HELP”.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
