The Dodd-Frank Act of 2009 mandates that regulations are drafted that will require lenders to evaluate every borrower's ability to repay the requested loan. Seems as the Consumer Financial Protection Bureau
is perceiving this mandate to mean that lenders MUST verify every borrower's
income, assets and debt.
I place this right in line with putting left turn red lights at even the most remote intersections.
A friend of mine wants to purchase a home in Florida. He has very high credit scores - all above 750. He would like to put 50% down on a $160,000 home, borrowing $80,000. He can verify the assets are his own but they happen to be in blue chip, dividend paying stocks that he doesn't want to sell. Unfortunately, the dividend income is not enough to qualify for the loan.
Mind you, he has enough money to pay off the loan at any time. A lender would have a lien on a property that is fully half borrower equity.
He can't get a loan.
Shouldn't we be calling common sense "uncommon sense" since so little of it seems to exist today?
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