Now that most of the bombs have been detonated and there is loan and bank shrapnel scattered everywhere those of us still standing are wondering where the dust will finally settle. As in most cases where too little has been done too late you are likely to see history repeat itself, like "LOCK THE BARN AFTER THE HORSE IS GONE"! So what to do next? "OVER COMPENSATE" and that is what we have now is "over-regulation", to the point nothing can be done. Yes, that's where we are stopped, halted, frozen, gridlocked, caught in bureaucratic red tape!
Is is possible the Government is causing bank failure at this point? Interesting question one might ask. If you talk to anyone in the banking industry you are likely to hear a "yes" on many different levels. I know this theory is "so outrageous" but if you thought five years ago the economy would be where it is today, that would have been considered outrageous as well.
What I see is the White House administration and our president flapping their pearly whites to the people "we need to get the banks lending again", the absolute reverse is happening. Bottom line? With tightened regulation, most consumers no longer qualify for loans. Small businesses all over the country are suffering because the existing lines of credit they once had have now been suspended, frozen or called due (yes, I said called due). I have yet to see "any" bank offering new lines of credit to small businesses and in the home loan sector, lines of credit or seconds are simply a dirty word.
In layman's terms, government regulators with all their little sharpened pencils have created "so many" unrealistic rules and regulations that it is nearly impossible for the Banks to lend and for consumers to get loans. If you add the "pick an appraiser out of a hat policy or HVCC" to the equation, its no different than playing at the craps table. HVCC is directly out of a horror novel. Let me lay it out simply. Do you want the government to tell you that you have to pick your lawyer or accountant or doctors name out of a hat, not even a hat you can see? There is a mystery person whose job is to pick the name out of a hat that is directed by the bank you are using. Further, you're not allowed to ask questions, talk to the appraiser or even contact him or her but oh I forgot, you have to pay for it. That about sums up the appraisal process.
Unfortunately its not very politically correct to be speaking of our fine policy makers, leaders and lending institutions this way but this is where we are folks and this is another reason our economy continues to falter. Money simply cannot move, it is stuck and your government has frozen it! Banks are hoarding money for fear of the regulators and this fear stifles innovative lending to our small businesses and entrepreneurs. Capitalism is completely gone in the lending industry and we must change this. Banks must take risk to lend and for that risk banks deserve to make a profit, it's just that simple!
Every lender I deal with is telling me regulators come in and ask how the lending business works (o.k. that's horrifying in itself) then they sit there and think of new forms and new guidelines for the lenders to adhere to. I hear from every lender I have ever done business with that the bank regulators that come in to make the rules, in most cases have "no idea" what we do or what they are talking about and begin the conversations with "so tell us what you do and how you do it". So these are the people sent from the government to protect the consumers? GOD HELP US ALL!!!!!!!!!
Now lets talk about the new RESPA and the new closing statement or disclosures. There isn't one person in this industry including banks underwriters, loan officers, funders, title companies, escrow officers or bank officers who share a common understanding of this form. If we can't read it and commonly understand it, how can we explain it to our customers? It also has funds incorrectly reporting for tax purposes so I can't wait until the IRS gets their hands on it. So I say why aren't the people who are knowledgeable in this industry, those of us who are in it day to day consulted on what should be done?
We have an over eager administration wanting to change the banking industry in a day and things just don't work that way. If a house needs a new roof you don't tear down the whole house, you simply replace the roof.
COME ON AMERICANS, LETS "BE AMERICAN" AGAIN!!!!!!
Having trouble getting a loan? Follow God!
If you’re lucky to get one approved, here is the process. You see the loan comes out of the loan processing center in hell and moves to the minister for approval (who is on earth) then passes the Angels who bless it. It then moves to the the God level, if you’re lucky God will bless it. Then is has to fall though heaven back to earth for docs and if the condition angel is asleep and misses you will have to wait until the next day for the condition Angel to give you conditions, the loan will move to the the doc Angel, if the doc Angel is asleep you may have to wait 5 business days because God and the Angels don’t work overtime or weekends (for loans) and are very busy and must audit the file for bad deeds. If all is good the loan then falls back to earth.
The next phase is the government regulators who regulate what God does, this will take 7 business days. Then another 5 days for re-disclosure of Gods counter offer on the loan, because the government wants to make sure you agree with God. By this time you may have died and gone past the Angels right to heaven and the loan is no longer needed.
By Rosie Rains
The next phase is the government regulators who regulate what God does, this will take 7 business days. Then another 5 days for re-disclosure of Gods counter offer on the loan, because the government wants to make sure you agree with God. By this time you may have died and gone past the Angels right to heaven and the loan is no longer needed.
By Rosie Rains
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