Urgent Info, Please Read...New Bills Introduced Into The State?

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Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

Good Morning....more information ran across my desk.  One of my reps from my wholesale lenders gave me a heads up and I figured I would pass it along.  Below I wanted to share an important email from Bill Donivan, the president of  the central chapter of the Pennsylvania Association of Mortgage Brokers.  This, my fellow Rainers,  outlinines some major things going on in our industry.  Please take some time to read through and understand the proposed changes.  If passed, these changes would drastically alter life as we know it!

                                

 Hello Everyone,   We now have a crisis upon us. One that needs immediate action and understanding from each and every one of you. There have been two bills introduced into the state by consumer groups that will drastically alter how business in our world will be conducted. It does not matter if you are a broker, banker, loan officer, A.E.(rep), realtor, or title person, we must stop these bills. If not, then your income and future will stop. Its that simple.   House Bill 38 & House Bill 40 will prohibit "Stated Income" & "No Doc" loans. A "Cautionary Notice" must be given stating that the rate and fees could vary based on which LENDER and which BROKER is selected. You must be able to document and verify "Current and Expected income" of the borrower. A Brokers NET worth must be verifiable and begin the first year at 50 thousand, the next year 75 thousand and the next year 100 thousand, etc. For each Loan Officer, there will be a fee of $200.00 per year.  You must chose between a YSP or Up Front Fees, not both, unless you first give the borrower all possible options.  Lenders Fees will be limited to 1% of total compensation and Brokers Fees to 3% which includes the Lenders Underwriting fees. You must meet with borrower(s) and have an agreement signed that state you will do a "suitable" loan for the borrower(s). Unfortunately who decides what a suitable loan may entail is not explained. Is a second home or a dream vacation a suitable loan?   These are just some of the features of these two bills. To find out more, you must attend our meeting on April 10th, starting at 4PM at the Holiday Inn, New Cumberland, Pa. The education for our meeting will be "Ethics and Pa Law," Wow, what a great topic for the evening. If you need these last two mandatory credits, you must preregister at http://www.pamb.org/ , download the form and get it to Erin at the PAMB office.   We are having a very special guest for this meeting on April 10th. George Hanzimanolis, past President of the PAMB and currently the President Elect of NAMB will be in attendance and available for questions. One terrifically important evening for all of us in this industry.   Lets not forget the Mac Valley Forge Conference on May 22nd and 23rd. Education, Lenders Booths, Networking and Enjoyment. Our own Jim Mahler from M&T Bank has agreed to be the DJ during the opening evenings ceremonies. I know this email has been lengthy, but it was necessary. Take Care and Happy Mortgaging. You all know how to find me with questions.  

 

Bill Donivan H. I. P. (Honor, Integrity and Professionalism) 717-586-2697

 

 

All I can say is Wow!????   Your thoughts?    

                                                                           

 

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Rainer
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Fred Pickard
Fred Pickard Innovations Realty Inc - Hershey, PA
Hershey, PA

Jason,

Sounds like the legislature is doing the typical knee-jerk reaction to some negative press and some consumerist group lobbying.

In a free market economy (we still have that here, don't we?) the market determines the price paid and the profit margin of the service provider. The market determines who stays in business and who does not. And this legislation, if it is as vague as shown above, would never pass the court's test.

Mar 26, 2007 12:47 PM #1
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Hey Fred,

   I agree with you.  While I haven't seen the exact details...what was outlined in that email is borderline ridiculous in my view.  The industry should regulate itself when it comes to 'Stated' and 'No Doc' loans.  Thanks for your insight Fred.

Mar 26, 2007 12:54 PM #2
Anonymous
Anonymous

'Mac Valley Forge Conference on May 22nd and 23rd'

Jason, what's this - have a link?

Mar 26, 2007 04:16 PM #3
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I don't have a link off hand Rob, you may want to click on the http://www.pamb.org/ site and do a little digging.  My guess is more info is there.
Mar 27, 2007 05:28 AM #4
Rainer
5,140
Randy Bolton
None - Diamond Bar, CA

Last I heard, this type of legislation was going on in many states and is actually backed by big banks that want to finally once and for all kill and drive all brokers out of business.

Banks over the last few Years sued the National Association of Realtors because they wanted to take listings at the bank branches (1% commission fee to sellers) and then pay a whopping $500 to any buyers agent who showed the house and got it sold.  Even if you hate her, it was Hillary Clinton on the senate floor who killed that.  Every Realtor in the country is indebted.

Banks are the offspring of Satan.  This is why I actually closed my accounts and now have the Orange account with ING and online banking.  ING, unlike banks, aren't sueing every Realtor and Loan Brokerage in the country.  Remember when banks sued to have mortgage brokers disclose Yield Spread Premiums, but banks didn't call their in house rebates YSP's so no disclosure was needed on their deals??

Do your research so you know I'm not lying.  Then pull your accounts and stop banking with people who want to destroy you in the name of obtaining a higher stock price for their shareholders.  Banks are...  BARBARIANS AT THE GATE.

 

 

Mar 27, 2007 03:27 PM #5
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
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Randy - Very interesting insight.  I will certainly do my due diligence and research this myself. 
Mar 27, 2007 03:44 PM #6
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