Posted by Bernd Hanak on July 16, 2011 at 09:21:58:
A ?crook,? by any other name, is somebody who commits an immoral act, such an aggression against another person or his property, or somebody who breaks his word. A person who tries to preserve his natural freedoms and his right to live in peace within his environment is not morally obligated to follow the latest irrational edict of the monarch, especially if his personal survival is endangered. A monarch, since the beginning of history, has been a man, or a woman, who was a common thug. (Remember Shakespeare?s Cassius who says of Julius Caesar ?the wine he drinks is made of grapes.?) This ?strong-man? does not produce anything. His only goal is to maximize the loot that he can extract by pure threats and force, from productive individuals and populations, domestic or foreign. His insatiable appetite for more power and more confiscations characterizes his philosophy and assures his inevitable, eventual demise. The real? crooks? are the thugs and their henchmen, and not their victims.
Posted by Bernd Hanak on July 15, 2011 at 07:05:29:
The Federal Reserve, which received sweeping new authority under the Obama regulatory reauthorization, wants to effectively eliminate seller-held (a.k.a. purchase money) mortgages. It will do this by enacting a rule for the Dodd-Frank Act prohibiting property sellers from taking back a mortgage unless the buyer essentially can qualify for conventional financing!
What’s more, Ma and Pa Homeowner, who create 95% of seller-held mortgages, won’t be able to qualify buyers under the same underwriting standards that banks are required to perform, and therefore the cash flow notes won’t be created.
If this is enacted it also will remove access to housing for millions of Americans, because seller “financing” is the only way people who can’t qualify for conventional loans can buy a house.
Moreover, it would allow a buyer a three year right of rescission (they can cancel the sale) if the seller did not properly qualify them. The right of rescission also applies to anyone who buys the note.
With all due respect, I have to disagree with the sweeping statement,
“he Obama regulatory reauthorization, wants to effectively eliminate
seller-held (a.k.a. purchase money) mortgages”
I also have to disagree with, " It will do this by enacting a rule for the
Dodd-Frank Act prohibiting property sellers from taking back a
mortgage unless the buyer essentially can qualify for conventional
financing!"
I am a member of the Manufactured Housing Institute’s National Task
Force on Dodd-Frank. I am also the one that posts here from time to
time urging readers to get involved in a letter writing campaign to
Congress urging them to create and pass remedial legislation that
addresses six very specific issues that are critical to the entire industry.
I have written about this for months in the Chattel Finance Newsletter,
and the industry on-line ezine. I am also the author of the white paper
on Dodd-Frank being circulated by MHI.
All of that said, seller finance or captive finance is the only form of
finance that can survive if these six changes are not effected prior to
the law going into effect. Seller finance can and will survive - although
much changed and much less profitable. Outside finance will wither
away for lower dollar loans without these changes. Both those engaged
in seller finance and outside finance should be working together to get
the changes we need and they should be doing it now, not later.
Qualification for conventional financing has nothing to do with it.
Whoever sent you that email may be confusing a need to run and
document an honest DTI ratio, but Dodd-Frank does not address credit
histories.
They’re playing into your hand - Posted by Dr. B. (OH)
Posted by Dr. B. (OH) on July 17, 2011 at 20:49:05:
Berndt,
As much as it pains me to watch, you have already written the history book on the next decade or two. They are just playing the finale. It is up to mass consciousness to turn it around.
In a sense, that may already be happening. The millstone is too big to lift so we must break it, leave it behind, and build new machinery. For our part we have to prepare, prosper, and look forward to the future.
Posted by JeffB (MI) on July 15, 2011 at 16:24:20:
Scary stuff. When will it end, nobody knows.
Ben Bernanke recently states they are considering a QE3 bond purchase program. QE1 and QE2 apparently were not effective. I guess they are of the opinion that when something doesn’t work, just try the exact same thing again and hope for different results!
Re: In This Morning’s Mail - Posted by Shawn Sisco
Posted by Shawn Sisco on July 15, 2011 at 15:13:46:
“The government is making crooks of all our people.” This was a remark made by a local junk dealer, he was refering to the “disabled” and those on some sort of dole and working for under the table compensation. But this post of yours reveals how that we will have laws prohibiting the exercise of our private property rights, and thus making “crooks” of us all.