NEW CFPB mortgage regulations introduced to protect home owners and the housing market from future mortgage loan disasters. And as usual, providing personal finance advice, real estate advice and consumer advice on the Ilyce Glink Show on January 13, 2013 at 11:00am Eastern Time on WSB Radio.
There’s so much going on. It was, for starters, a big week in real estate. The story I want to talk about right now is the new mortgage rules that were introduced by the Consumer Financial Protection Bureau (CFPB). This is causing such a hubbub and it’s really interesting to me because in effect, the new rules don’t change anything.
These CFPB mortgage regulations are designed to make a mortgage loan safer – for you, the banks and the economy. I have been doing this show for something like 15 years. I have been watching the housing market longer than I care to tell you but back in 2003, 10 years ago, the market was so hot. Home buyers making $50,000 a year were being granted $500,000 mortgage loans which now seems crazy, but that’s where we were – 10 times above leverage.
On the other side, homeowners were buying properties all over and prices were rising. Realtors and home buyers were so excited. They long for those days now. But that wasn’t safe for the economy. People forget that up until a few years ago, 98 percent of people paid their mortgages on time. The deep, deep recession that ensued, complicated by the burst of the housing bubble, derailed the housing market.
The new CFPB mortgage regulations just codify what now seems common sense to help us avoid another catastrophe like this. But so many people are upset. Why? Callers and I discuss.
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