Tuesday, August 7, 2007


Bill Richardson finally released his health care plan. It is pretty streamlined here on the website, so I will be interested to hear if there are more details. But in the meantime it has pretty bullet points to read.

Hillary Clinton also said some stuff about lending practices. Being a life-long renter, I had no idea what she was talking about. It is probably mushy, though.

Speaking of plans, I'll be in New Hampshire again on Thursday for a Dodd stop in the morning, and then expanding my new GOP blogging capability with a visit to John McCain's town hall meeting in Merrimack. Seeing as how I intend to start calling myself the Merrimack Daddy once I fully move into the Granite State, I think that will be an important step on the road to the blog house. That said, the event will cause me to miss the Manchester CIGNA 5k but I fully intend to hit up Strange Brew with some runners afterward. Hit me up if you're around.

Getting personal,


CB said...

Indeed! A little mushy. As a sub-prime loan officer for 13 months, I can assure you:

1) Has anyone ever heard of a salesman who didn't make a commission or bonus? If this is new stuff, edumicate yoself, go check out "Mortgages for Dummies" from the public library, and read it. Come on...
2) The only thing I can see federal registration doing is making another hoop to jump through, limiting the number of qualified mortgage brokers, thus increasing the costs of obtaining a mortgage, making the 'american dream' even more costly. All mortgage brokers have to get a license by almost every state in the nation anyway, and its not rocket science. In addition, the number of legally required disclosures to show to the borrower are rediculous as it is. But of course, with there so much to read, most people don't read it, then blame the lender for not telling them.
3) If pre-payment penalties are eliminated, lenders will just increase their spreads (the rate)and/or fees to make initial costs of buying a home higher, pricing more people out of the market right off the bat (and probably cause a decrease in demand for housing, causing home prices to fall even more, and millions more will owe more than their house is worth).
4) Sub-prime lenders already include T&I payments in their underwriting. Selling a mortgage to someone who will foreclose is not profitable, and a pain in the ass for the bank.
5) Establishing funds to take care of people who foreclose simply decreases the risk to borrowers, making foreclosures more prevelant, and everyone else will end up paying for it.

I could obviously go on forever, but having said that, the sub-prime mortgage industry is in trouble, and a lot of people are getting hurt by it, home-owners, people in the mortgage industry (who have lost their jobs), as well as investors, losing a shit-ton of money. I could write forever also on why this is, but the point being her plan would do nothing to help. I was smart, and got out of the industry as soon as I realized...

BTB said...

Boo yah