Comments on: Tougher Mortgage Regulations - A Good Thing! http://realestatelaundry.com/2007/07/02/tougher-mortgage-regulations-a-good-thing/ Central Ohio Real Estate Market and Community Information Tue, 6 Jan 2009 12:18:27 +0000 http://wordpress.org/?v=2.3 By: Chris http://realestatelaundry.com/2007/07/02/tougher-mortgage-regulations-a-good-thing/#comment-100 Chris Thu, 30 Aug 2007 19:51:43 +0000 http://realestatelaundry.com/2007/07/02/tougher-mortgage-regulations-a-good-thing/#comment-100 Hey, Man. Long time/first time. I don't know if regs are the answer. Big lenders assume washington will step in to bail everyone out. THAT will only make companies continue to make dumb loans that nobody can pay for. The biggest change that has been necessary for EVER is disposable income requirement and not debt ratio. A 42% debt ratio if you're making 40k a year is a lot tougher than a 55% d/r if you're making $100k a year. But, FHA, Fannie and Freddie are loathe to consider that as part of findings. And, if you look at the (real) OO loans that fell apart, you'd see that the disposable income was less than $550/person. Hey, Man. Long time/first time.

I don’t know if regs are the answer. Big lenders assume washington will step in to bail everyone out.

THAT will only make companies continue to make dumb loans that nobody can pay for.

The biggest change that has been necessary for EVER is disposable income requirement and not debt ratio. A 42% debt ratio if you’re making 40k a year is a lot tougher than a 55% d/r if you’re making $100k a year. But, FHA, Fannie and Freddie are loathe to consider that as part of findings. And, if you look at the (real) OO loans that fell apart, you’d see that the disposable income was less than $550/person.

]]> By: Buying a Home in Columbus - What to expect in today’s market http://realestatelaundry.com/2007/07/02/tougher-mortgage-regulations-a-good-thing/#comment-98 Buying a Home in Columbus - What to expect in today’s market Thu, 30 Aug 2007 17:56:36 +0000 http://realestatelaundry.com/2007/07/02/tougher-mortgage-regulations-a-good-thing/#comment-98 [...] The last few months have certainly been a string of field days for the media.  With the apparent collapse of the sub prime lending industry, tougher mortgage regulations, and lots of inventory on the market, Buyers must be stealing homes from Sellers in the Columbus area.  In reality, this is not really the case. [...] […] The last few months have certainly been a string of field days for the media.  With the apparent collapse of the sub prime lending industry, tougher mortgage regulations, and lots of inventory on the market, Buyers must be stealing homes from Sellers in the Columbus area.  In reality, this is not really the case. […]

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