As a mortgage originator I am extremely disappointed with regards to the way Barney Frank and friends are handling the free fall in the Real Estate crisis. Since the approval of the new good faith estimate (GFE 2010) things have become confusing enough for the buyers that they are simply walking away from the transactions. Why? The answer is quite simple. It does not inform the buyer how much money they need to bring at closing. The Banking and Real Estate industry have gotten battered enough with lack of trust from the consumer that these new mandated forms do nothing but confuse all parties further.
It is no secret that big government is focusing on the most trivia and pointless details of compensation for lenders. The gridlock will continue to fall back on the lack of transparency that Mr. Frank has mandated to be included on disclosure documents that the consumer has to sign blindly. Blindly because nowhere in the documentation does it declare the check that the buyer needs to bring to the table.
To make matters even worse, consumers, buyers and sellers, are obligated to trust the most inexperienced appraisers in the business. These two week tenured new appraisers that under normal circumstances would have had to be mentored by experienced colleges are pressured to low ball reports to safeguard the future of the lenders. Mr. Andrew Cuomo is now running for Governor of New York so he has no interest in undoing the damage his nonsense rules did to tax the system.
Get involved as a consumer and as a professional and stop the bleeding of our fragile economy. Be vocal and write to your local representatives in this election year to make sure we are well represented in congress. We all know that construction jobs would revitalize our economy. Until the red tape is removed from Washington our country will continue to suffer.
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Amen! Fantastic post, and I concur with you wholeheartedly.