If the State had run the background checks they make mortgage brokers pay for when they are licensed, more than half the crooks would have been caught before they sold bad loans. But that is not the current problem. It may have contributed to the credit crisis, but the current problem is one of capital.
How are you going to raise capital if you cannot do anything about it? The answer is ‘Yes.’
The HAMP scuttlebutt is that it is not really working. The Government’s Home Affordable Modification Program is not quick enough to help the people it is trying to help. Servicers merge and their computer systems get mired in trying to interface (note that if it were a litigation matter court deadlines would still be court deadlines regardless of technical difficulties) plus you run into the problem of who owns the loan. On top of that the government regulations are telling lenders they cannot loan money while at the same time saying lenders must loan money.
The Florida Attorney General is campaigning to get these modifications done because a lot of people get trial modifications, then are turned down for a final modification; meanwhile the money they paid into the trial modification does not really count towards their mortgage payment.
Lending regulations are in a huge quagmire. The rules are four inches thick in Biblical type and changing daily. It is a capital problem with a Capitol setting.
The good news is that since the creation of the FDIC in 1933, risk in banks has been greatly reduced. One hundred and twenty-four banks have closed this year, but there has not been a run on the banks.
The other good news is that Karl Vierck is a good local resource of updated mortgage information. Please call on him at Ancient City Mortgage for your mortgage needs. He can be reached at (904) 669-5284 or via email at karl@ancientcitymortgage.com.
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