While Senators Dodd and Shelby are discussing the Financial Reform bill on both TV and behind closed doors, TBTF -Too Big To Fail is of primary concern in their macro vision.
But, what about all that has happened in the past few years? Foreclosures, Short Sales, Modifications, Unrefinancing…..the issue is really TSTF- Too Small To Fail.
The Congress needs to put into the bill law that will get the day-to-day world of Americans that mostly did not choose to be in a negative position able to get their issues squared away quickly and not take the economy down further.
First- repeal the HVCC. Unbelievable but true, the amount of inaccurate appraising and appraisal fraud has INCREASED since HVCC. HVCC does not work. Lenders need to have their own approved appraiser list and make the appraisals transferrable (among other things). DUH!
Short Sale Approvals should happen within 30 days after a full package is submitted. Legislate it, that’s the only way to get B of A and other banks to crank. Also, have mortgage brokers/bankers allowed to package the Short Sales because they are the ones that know how to do it. DUH!
Loan Modifications- These are also known as refinances. Have all mods go through licensed mortgage people and not the scum and scammers that have been doing it. I sell loans directly to wholesale lenders, why can’t I just package a loan and get it approved in a few days? DUH!
No Appraisal Refi- How about people who have 750 credit scores, plenty of income and just have a house underwater and a 6.5% loan? Now, they can’t refi. How about if they could and then save money each month that can be put back into the economy? DUH!
Call your Senator and let them know.