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Policy Institute says Dodd-Frank is a Bust

February 1st, 2016 Comments off

dodd_frank___bloombergbusinessweek___creditThe American Action Forum (AAF) has determined there has been a 20.5 percent drop in community banks with assets under $1 billion dollar in assets since Dodd-Frank became law five + years ago, according to data supplied MHProNews by the Federal Deposit Insurance Corp (FDIC). That is a substantial increase from the 13.1 percent drop during the five years leading up to Dodd-Frank, reports newsok.

A center-right policy institute, the AAF has also determined that the legislation that was designed to keep large financial institutions from causing a recession has resulted in the “too big to fail” banks are thriving while the smaller ones are not, despite the fact they were not the responsible ones causing the housing downfall. While this is not new information, AAF says D-F has led to a 14.5 percent decrease in consumer revolving credit, such as credit cards, since 2010, and cased mortgages to cost about $350 more.

Dodd-Frank’s regulatory burden must be borne by someone: financial institutions and their employees, shareholders, or consumers in the form of higher prices or less access to credit,” the AAF report states. “It appears the law has affected all three entities.”

While Dodd-Frank was supposed “to generate nothing but good,” according to AAF the rules of Dodd-Frank state creditors might consider adjusting the terms and conditions of loans to pass some or all of the price increase through to consumers. The final rule could increase the cost of credit or curtail access to credit for a small share of … consumers and purchase-money consumers.”

As the MHPro industry knows, Dodd-Frank also put a big crimp in the ability of individuals and retailers to finance the sale of manufactured homes, especially by consumers at the lower end.

The bottom line: consumers have fewer options for financing, less access to credit, and higher costs accessing credit. ##

(Image credit: bloomberbusinessweek)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Title Company Head says Mortgage Disclosure Rules will Delay Home Sales

August 28th, 2015 Comments off

ted_c_jones__newsokTed C. Jones, chief economist and senior vice president for Stewart Title Guaranty Co. in Houston, says financing the buying and selling of houses will be much more difficult when the mortgage disclosure rules go in to effect Oct. 1, as newsok tells MHProNews. We’re going to continue to have more renters than owners than normal, and part of that, almost all of that, is a function of our government — Dodd-Frank and the CFPB,” he said at the Oklahoma Building Summit & Expo at Cox Convention Center.

He says reform of the mortgage disclosure rules were supposed to be implemented Aug. 1 but have been delayed until Oct. 1, but that will not change the delays written into the new rules. Noting it will not be a smooth transition at all, Jones said it will bring some transactions to an abrupt stop: Some critics say it could could closings 10 to 15 days.

If you go to a closing and there is a material change in that dollar amount, you have to delay the closing another three days,” he said. “Just prepare yourself for some extra interest carried (forward on the seller’s or builder’s own loan). And just pity the poor homeowner that thinks they’re moving into a house that day and that moving truck’s there, because they may not get the keys that day.

The TRID form–TILA-RESPA Integrated Disclosure—has no line numbers, making it difficult to understand for reconciling changes. Any transaction that involves a mortgage will use the new disclosure forms. He noted the last time HUD made a change to the main loan disclosure document–the HUD-1 settlement statement in 2010—homebuyers, real estate agents and title people came to closings before lenders had funded the transactions.

CFPB is a four-letter word as far as I’m concerned,” Jones said. “It is a dog that’s out of control.” ##

(Photo credit: newsok–Ted C. Jones)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.