The big R

If minimum lending guidelines for the mortgage industry had been in place.... Unregulated sloppy lending practices to satisfy Wall Street's greed for quick and fast dollars got us to where we are now.

Would you not agree that some type of regulation could have reduced the situation we are in now?

My point is if you had some uniform lending regulations on credit cards, mortgage etc, you could stop the idiots from making poor monetary decisisons.

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http://en.wikipedia.org/wiki/Truth_in_Lending_Act

http://en.wikipedia.org/wiki/Real_Estat ... edures_Act


Right of Rescission

Regulation Z: The Right-of-Rescission

What is the right of rescission?

The right of rescission is a consumer protection law found within the Truth in Lending Act

Truth In Lending Act -- Regulation Z
The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. In general, this regulation applies to each individual or business that offers or extends credit when the credit is offered or extended to consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four installments; the credit is primarily for personal, family or household purposes; and the loan balance equals or exceeds $25,000.00 or is secured by an interest in real property or a dwelling.

TILA is intended to enable the customer to compare the cost of cash versus credit transaction and the difference in the cost of credit among different lenders. The regulation also requires a maximum interest rate to be stated in variable rate contracts secured by the borrower's dwelling, imposes limitations on home equity plans that are subject to the requirements of certain sections of the Act and requires a maximum interest that may apply during the term of a mortgage loan. TILA also establishes disclosure standards for advertisements that refer to certain credit terms.

In addition to financial disclosure, TILA provides consumers with substantive rights in connection with certain types of credit transactions to which it relates, including a right of rescission in certain real estate lending transactions, regulation of certain credit card practices and a means for fair and timely resolution of credit billing disputes. This discussion will be limited to those provisions of TILA that relate specifically to the mortgage lending process, including:

1. Early and Final Regulation Z Disclosure Requirements

2. Disclosure Requirements for ARM Loans

3. Right of Rescission

4 Advertising Disclosure Requirement Early and Final Regulation Z Disclosure Requirements:

TILA requires lenders to make certain disclosures on loans subject to the Real Estate Settlement Procedures Act (RESPA) within three business days after their receipt of a written application. This early disclosure statement is partially based on the initial information provided by the consumer. A final disclosure statement is provided at the time of loan closing. The disclosure is required to be in a specific format and include the following information:
Name and address of creditor
Amount financed
Itemization of amount financed (optional, if Good Faith Estimate is provided)
Finance charge
Annual percentage rate (APR)
Variable rate information
Payment schedule
Total of payments
Demand feature
Total sales price
Prepayment policy
Late payment policy
Security interest
Insurance requirements
Certain security interest charges
Contract reference
Assumption policy
Required deposit information
Disclosure Requirements for ARM Loans:
If the annual percentage rate on a loan secured by the consumer's principal dwelling may increase after consummation and the term of the loan exceeds one year, TILA requires additional adjustable rate mortgage disclosures to be provided, including: The booklet titled Consumer Handbook on Adjustable Rate Mortgages, published by the Board and the Federal Home Loan Bank Board or a suitable substitute.
A loan program disclosure for each variable-rate program in which the consumer expresses an interest. The loan program disclosure shall contain the necessary information as prescribed by Regulation Z. TILA requires servicers to provide subsequent disclosure to consumers on variable rate transactions in each month an interest rate adjustment takes place.
Right of Rescission:[/b]

Webo said:

If it TRULY were... WHY would the economy now be the number one thing on voter's mind's this election cycle... JUST like it was in 1992?

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Well for one thing the Clinton's are running again. light: Don't you remember the last time they were trying to get into the White House back in '92 their mantra (that WORKED btw) was, "It's the worst economy since the Great Depression"? Remember, "It's the economy stupid!"?

Even though there was hardly a hick-up in the economy in '92 the Clinton's and their allies in the liberal media saw an opportunity to seize power by scaring America into thinking the sky was falling. We've seen this movie before. wink:

We're doing even better now and the few things that need attention to keep the train on her track are being addressed.

Our economy has been so red hot with growth in both home values and in the stock market for so long that a slight cool down was inevitable. This slight cool down is the mole hill that's being made into a mountain. light:

When I studied economics in college they taught us that a recession was two consecutive quarters of negative growth in the GDP. We haven't even had one but the media is constantly screaming the R word (right before the election). light: Remember this is the same media that constantly tells us how great things were in the 90's under Clinton, but when you compare unemployment rates, percentage of home ownership, stock market performance etc... we've actually done as good or better under Bush 43 but they conveniently leave that part out. Tdown:

If Iraq could be made into an issue that helped get a Democrat back in the WH then that would be all over the 'mainstream media's' agenda driven coverage--but thankfully it's starting to go our way and we're making real progress (that's why there's hardly a peep about it the news). wink:

95% of home buyers are making their mortgage payments on time, but if you listened to Hillary Clinton and her comrades in the media like Tim Russert and Chris Matthews you'ld think 95% of home owners were in foreclosure, getting kicked out on the street having to get their families next meal from a soup kitchen. conf:

The so called crisis in the mortgage industry is really only effecting a relatively small portion of borrowers (sub-prime) and the underwriting guidelines that got a little creative are being adjusted accordingly--The majority of borrowers who have their ducks in a row can still qualify for A paper loans that are at some of the lowest fixed rates we've ever seen. clap:

Wall Street really wants to see the Bush tax cuts made permanent and business taxes lowered. The very real possibility that anti-business pro-tax increase Hillary or a Hillary-lite John Mclame might get in the WH with both a democrat controlled Senate and House has investors rightfully scared.

American families are having a problem with fuel and food costs, but those increases can be directly attributed to the Environmentalist Wackos who won't let America drill for or process her own abundant oil supplies or develop clean and safe Nuclear power. They (EW's) are also mandating the abortion that is Corn Ethanol be put in our gasoline---this is driving up the cost of corn (which is either in or fed to almost everything we eat) and thus driving up food cost$. So until Americans wake up and realize what the Al Gores of this country are doing to the cost of their of fuel and food--those prices are only going to get higher~They can either do something about it or just grin and bare it.

The King has a good point about the 'I want everything yesterday mentality' that has some people living beyond their means but that's a problem on the micro level right now and not on the macro level of the over-all economy.

So to all the Chicken Littles I say relax and don't believe the agenda driven media's hype....take some deep breaths and these small hick-ups will be over before you know it IF we keep taxes low and encourage (not penalize) EVERYONE to go out and make money .....Unless of coarse we elect Hillary or Hillary-lite John McLame, then the sky really could fall and this moe-hill could become a mountain.

Durka Durka