Dodd Frank and it's impact on business

[Robertinfremont]

Testimony of a Mortgage firm representative of the group of mortgage firms actually

My testimony highlights the fact that Dodd-Frank was passed
in haste and some would say anger at the unknown of what
happened during the Wall Street meltdown. The creation of the
Qualified Mortgage, Qualified Residential Mortgage, hardwiring
underwriting standards into legislation, capping fees at
arbitrary percentages of a mortgage amount, and giving lenders
no bright line regarding legal liability will ultimately harm
consumers, the very people the Dodd-Frank Act was intended to
protect.
NAMB is calling for an 18- to 24-month extension of all
mortgage-related regulatory deadlines in the Dodd-Frank Act in
order for Congress to amend sections of Dodd-Frank to take out
or amend the unintended consequences that will harm consumers
in the mortgage market today.
``Skin in the game'' was a popular mantra during the years
leading up to the passage of Dodd-Frank, and we certainly think
the mortgage market is better at determining what that means
than the regulators. What was a great sound bite has turned
into a complex restructuring of the mortgage underwriting
system that regulators, industry, and many in Congress have
concluded is not going to work as intended and will ultimately
be harmful to consumers.

- THE IMPACT OF DODD-FRANK'S HOME MORTGAGE REFORMS: CONSUMER AND MARKET PERSPECTIVES

www.govinfo.gov

 

[Lord Tammerlain]

So the mortgage market is better situated to determine what skin in the game means than regulators. The mortgage market did not do a good job in 2004 to 2008. Why should they be trusted now

 

[Robertinfremont]

So the mortgage market is better situated to determine what skin in the game means than regulators. The mortgage market did not do a good job in 2004 to 2008. Why should they be trusted now

That is a super good question.

This is factual. We made plenty of subprime loans all the way back to around 1979. I could be off several years but the point is made that it was not Subprimes at all, but the regulators.

We were regulated when I was still A mortgage Broker by FNMAE. FNMAE to put it bluntly got greedy. They changed the rules. This spurred lenders above my paygrade to offer shitty loans. FNMAE made a killing until the market collapsed. Then they were virtually in bankruptcy so Bush took them over to save them.

We never minded at all if FNMAE got regulated back to normal. We were caught by surprise by their change in the rules. But when one got changed, one goes along.

In my particular case, I busted my tail trying to keep people away from poor loans. I gave them the best available. And we were always heavily regulated in CA.

Dodd Frank is a shit show is all it amounts to. It was invented for Democrats by Democrats and they told the republicans to go straight to hell.

Republicans wanted FNMAE to be regulated and leave us alone. If FNMAE would not buy the loans we would not offer those loans.

This is the utter true story. The FNMAE probably did not get regulated by Dodd Frank but I am not declaring that to be true. If it was regulated, I did not find it out.

 

[Phys251]

Testimony of a Mortgage firm representative of the group of mortgage firms actually

My testimony highlights the fact that Dodd-Frank was passed
in haste and some would say anger at the unknown of what
happened during the Wall Street meltdown. The creation of the
Qualified Mortgage, Qualified Residential Mortgage, hardwiring
underwriting standards into legislation, capping fees at
arbitrary percentages of a mortgage amount, and giving lenders
no bright line regarding legal liability will ultimately harm
consumers, the very people the Dodd-Frank Act was intended to
protect.
NAMB is calling for an 18- to 24-month extension of all
mortgage-related regulatory deadlines in the Dodd-Frank Act in
order for Congress to amend sections of Dodd-Frank to take out
or amend the unintended consequences that will harm consumers
in the mortgage market today.
``Skin in the game'' was a popular mantra during the years
leading up to the passage of Dodd-Frank, and we certainly think
the mortgage market is better at determining what that means
than the regulators. What was a great sound bite has turned
into a complex restructuring of the mortgage underwriting
system that regulators, industry, and many in Congress have
concluded is not going to work as intended and will ultimately
be harmful to consumers.

- THE IMPACT OF DODD-FRANK'S HOME MORTGAGE REFORMS: CONSUMER AND MARKET PERSPECTIVES

www.govinfo.gov

So you like foreclosures and subprime lending.

 

[Drawdown]

That is a super good question.

This is factual. We made plenty of subprime loans all the way back to around 1979. I could be off several years but the point is made that it was not Subprimes at all, but the regulators.

We were regulated when I was still A mortgage Broker by FNMAE. FNMAE to put it bluntly got greedy. They changed the rules. This spurred lenders above my paygrade to offer shitty loans. FNMAE made a killing until the market collapsed. Then they were virtually in bankruptcy so Bush took them over to save them.

We never minded at all if FNMAE got regulated back to normal. We were caught by surprise by their change in the rules. But when one got changed, one goes along.

In my particular case, I busted my tail trying to keep people away from poor loans. I gave them the best available. And we were always heavily regulated in CA.

Dodd Frank is a shit show is all it amounts to. It was invented for Democrats by Democrats and they told the republicans to go straight to hell.

Republicans wanted FNMAE to be regulated and leave us alone. If FNMAE would not buy the loans we would not offer those loans.

This is the utter true story. The FNMAE probably did not get regulated by Dodd Frank but I am not declaring that to be true. If it was regulated, I did not find it out.

Ok but that link is 2012 testimony related to a request for a 24 month extension. I am pretty sure whatever cat was being skinned is dead and buried either way

 

[Robertinfremont]

Ok but that link is 2012 testimony related to a request for a 24 month extension. I am pretty sure whatever cat was being skinned is dead and buried either way

That is the trouble with handing out links. I personally am not bound by the words contained in links but offer them to give others a hint what is going on.

 

[Robertinfremont]

So you like foreclosures and subprime lending.

No, that is not the case.

 

[chuckiechan]

Testimony of a Mortgage firm representative of the group of mortgage firms actually

My testimony highlights the fact that Dodd-Frank was passed
in haste and some would say anger at the unknown of what
happened during the Wall Street meltdown. The creation of the
Qualified Mortgage, Qualified Residential Mortgage, hardwiring
underwriting standards into legislation, capping fees at
arbitrary percentages of a mortgage amount, and giving lenders
no bright line regarding legal liability will ultimately harm
consumers, the very people the Dodd-Frank Act was intended to
protect.
NAMB is calling for an 18- to 24-month extension of all
mortgage-related regulatory deadlines in the Dodd-Frank Act in
order for Congress to amend sections of Dodd-Frank to take out
or amend the unintended consequences that will harm consumers
in the mortgage market today.
``Skin in the game'' was a popular mantra during the years
leading up to the passage of Dodd-Frank, and we certainly think
the mortgage market is better at determining what that means
than the regulators. What was a great sound bite has turned
into a complex restructuring of the mortgage underwriting
system that regulators, industry, and many in Congress have
concluded is not going to work as intended and will ultimately
be harmful to consumers.

- THE IMPACT OF DODD-FRANK'S HOME MORTGAGE REFORMS: CONSUMER AND MARKET PERSPECTIVES

www.govinfo.gov

It has been my view that Bill Clinton, and GWB were both in agreement that “Home ownership was a good social value”, and to achieve that goal they allowed unconventional income sources to be counted - like tips, overtime, and juniors paper route. Then the tips fell, the overtime fell and the whole shiterie fell.

Mortgage bonds were wrangled into billion dollar super bonds with similar risk profiles and auctioned off, mostly to foreign countries central banks.

We could not default of these bonds for lots of reasons, so we had to do what it took*. GWB, BTW, tried to convince Barnet Frank to tighten up, but he woukd not.

 

[Lord Tammerlain]

It has been my view that Bill Clinton, and GWB were both in agreement that “Home ownership was a good social value”, and to achieve that goal they allowed unconventional income sources to be counted - like tips, overtime, and juniors paper route. Then the tips fell, the overtime fell and the whole shiterie fell.

Mortgage bonds were wrangled into billion dollar super bonds with similar risk profiles and auctioned off, mostly to foreign countries central banks.

We could not default of these bonds for lots of reasons, so we had to do what it took*. GWB, BTW, tried to convince Barnet Frank to tighten up, but he woukd not.

One senator is more powerful than the president, 99 senators and hundreds of congress members?

All hail Barney Frank the most powerful man in the US. Why he was not even the senate majority leader

 

[Drawdown]

That is the trouble with handing out links. I personally am not bound by the words contained in links but offer them to give others a hint what is going on.

The fundamental problems wer the crazy assed derivatives nobody understood along with financials becoming unbridled in what they could invest in so they got all turned around in metal markets and paper they couldn't really value at the same time. The subprime stuff is overstated as a problem. Even now, a lot of the regulations are window dressing. Combining the HUD-1 and the Truth in Lending into a single document instead of separate documents is not some radical change. Requiring borrowers see the new closing statement at least 48 hours ahead of closing, however, is not something I think is a bad thing.

 

[Phys251]

No, that is not the case.

You hate Frank-Dodd, which was designed to prevent many subprime loans and foreclosures.

 

[Robertinfremont]

The fundamental problems wer the crazy assed derivatives nobody understood along with financials becoming unbridled in what they could invest in so they got all turned around in metal markets and paper they couldn't really value at the same time. The subprime stuff is overstated as a problem. Even now, a lot of the regulations are window dressing. Combining the HUD-1 and the Truth in Lending into a single document instead of separate documents is not some radical change. Requiring borrowers see the new closing statement at least 48 hours ahead of closing, however, is not something I think is a bad thing.

You need to start at the beginning and not at the end.
FNMA and Freddie when I was in the Mortgage and Appraisal business created approved forms and approved loans to market. If Fannie or Freddie would not buy the loan, that they themselves ruled over, the lender was saddled with a lower bank account and no buyer for the loans.

The little told secret is how the mortgage industry really functions and how they make money.

It is no secret at all yet is barely ever mentioned.
I created loans for those wanting loans. I had to select said loan from a sheet of loans. I played no role in the creation of the loan sheets and their contents.
Say you sent me rate sheets. I would study your rates and for my clients pass to them the best of the best deals. It makes more sense to extra please customers than hand them crap. Customers were rarely ever experts so the dumb lender could get more profit from setting them up with a poor loan.

And we all know there were lenders doing that daily. However those kind of lenders end up making the loan creaters angry since they do not only screw the customer, they try to do it to the lender as well.

Give you a true example. Mary Lou owned a mortgage firm but she was not a licensed Broker. She paid a broker to let her be covered by his license. They were both crooks in other words. Mary Lou hired a woman who came in to change the figures on the borrowers income tax forms. She could cheat the best. I only learned of it after her and Mary Lou got caught and in deep trouble with the law.

Mary Lou and this woman were making it a habit to fake tax returns to help the customer get the loan. Which made Mary Lou a lot more profit.

Say you owned an auto repair shop. They are self employed. We always paid closer attention to them than wage earners. They could fake things well. A wage earner is handed forms and can't fake those. We also double checked with his own employer.

For the Self Employed, the only check is on the accountant. Accounts do lie at times.

Anyhow, when poor loans are delivered to borrowers, early they appreciate it. Later they learned how they got screwed over. And then they report to the law or the regulators. And all hell breaks out.

Derivatives are only handled by the highest of the high money managers and not down at the loan level that deals with customers. Even the wholesalers are not involved in Derivatives unless they are massive in size.

When Countrywide Funding was still in operation, they were so huge they made deals with Fannie or Freddie to profit more. And at that level they could have got involved in Derivatives. I never learned if they did or not.

 

[Luce]

Hey, so we can have another mortgage bundle meltdown. Huzzah.

 

[Robertinfremont]

You hate Frank-Dodd, which was designed to prevent many subprime loans and foreclosures.

Sorry but that is not what it does.

Dodd Frank regulated in a crude fashion and cost the industry millions of dollars. Said Dollars ought to be passed to the consumer yet were not allowed.

Dodd Frank could have fixed the problem by going after Fannie Mae and Freddie Mack. But they went at the bottom rung guys. And those weren't the problem.

What is strange in my reading of Democrats is they do not try to learn this topic and try to understand it.

I do admit however this problem is ultra complex.

Last year, the Treasury Department declared that the law, despite its ambitious scale and scope, has “failed to address many drivers of the financial crisis, while adding new regulatory burdens.” As such, the agency recommended a number of changes, including improving efficiency and decreasing unnecessary complexity.Mar 19, 2018

With Rollback, Dodd-Frank Is Now Officially A Dud

I often remind investors to look past the negative and find the positive. Last week provided no shortage of big splashy headline stories, from yet another high-profile personnel shakeup at the White House to a nail-biter special election in Pennsylvania’s 18th Congressional District.

www.forbes.com

 

[Phys251]

Sorry but that is not what it does.

Your propaganda does not turn your lie into the truth.

 

[Robertinfremont]

Hey, so we can have another mortgage bundle meltdown. Huzzah.

I saw a report earlier that the Trump Administration solved problems caused by Dodd Frank. i may have to give it a second look.

The event, which focused on regulatory developments in the 10 years after the crisis, also included remarks by Sen. Sherrod Brown, D-Ohio, the ranking member of the Senate Banking Committee. Both he and Warren opposed a recent Senate bill — signed into law by President Trump — that rolled back certain provisions of Dodd-Frank.

Dodd-Frank is a success story: Progressives, former regulators

Elizabeth Warren, Sheila Bair and other regulatory hawks at a D.C. event hailed the reforms enacted in the wake of the 2008 crisis.

www.americanbanker.com

 

[Robertinfremont]

Your propaganda does not turn your lie into the truth.

What propaganda? What lie?

 

[Luce]

I saw a report earlier that the Trump Administration solved problems caused by Dodd Frank. i may have to give it a second look.

Sounds more like Trump gave the banks permission to play ****around with mortgages again.

 

[Phys251]

What propaganda? What lie?

Now you're asking stupid questions that you could easily look up the answers to.

 

[Robertinfremont]

Hey, so we can have another mortgage bundle meltdown. Huzzah.

Well so long as both Fannie and Freddie do not engage in poor loans, we are much safer than when they engaged in poor loans.

Congress set affordable housing goals for Fannie Mae and Freddie Mac that rose over time. Fannie Mae and Freddie Mac reduced underwriting standards—eventually including no-down-payment loans—to meet these goals. ... In 2010, a Democrat-controlled Congress passed Dodd-Frank and President Barack Obama signed it into law.

As I have said here, it was those two agencies that ran the market.

One lesson I learned early in life, If the Farmer is explaining farming to you, and you work for wages, believe the farmer over the wage worker.

It applies to science too. Believe the scientists over your politicians.

The Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as Dodd-Frank, was passed by Congress and signed into law by President Barack Obama in 2010. It is touted by the left as a law that regulates financial markets and protects consumers. But within the 800-plus...

www.heritage.org

.

 

[Robertinfremont]

Sounds more like Trump gave the banks permission to play ****around with mortgages again.

The ruler of the market is both FNMA and Freddie Mac. And your expertise is what?

Banks mostly got out of the mortgage business prior to 1970. Savings and Loans played a huge role. They went out of Business under Jimmy Carter.
Subprimes had long been around. And they were a specialized loan and only some firms would be involved in them. And they carried high rates of interest.

Fannie and Freddie got in and cut the rates of interest and made funny kinds of loans. No income loans?? Who makes no income loans. Freddie and Fannie created them.

 

[Robertinfremont]

Now you're asking stupid questions that you could easily look up the answers to.

Stupid comments were made to me and all I did was ask for proof. I do not look up answers to stupid comments.

Those making those stupid comments have the duty to prove them, not me.

 

[Phys251]

Stupid comments were made to me and all I did was ask for proof. I do not look up answers to stupid comments.

Those making those stupid comments have the duty to prove them, not me.

Robert stamps his feet, refuses to do his own work, and angrily demands that someone else do it for him.

He gets even angrier when such infantile demands are not capitulated to.

 

[Robertinfremont]

You hate Frank-Dodd, which was designed to prevent many subprime loans and foreclosures.

It should have gone after the causes then and not victims.
Fannie and Freddie were the culprits.

 

[Robertinfremont]

Robert stamps his feet, refuses to do his own work, and angrily demands that someone else do it for him.

He gets even angrier when such infantile demands are not capitulated to.

Why did you make stupid remarks? Nobody is stamping feet but for yourself. Stop it.