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  • I've worked for a company that used to dry shaft people by doing this. Guaranteed they'll create a stink about it, while simultaneously holding secret meetings to find ways to do the same thing while being within the letter of the law.
  • FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.
  • If we would just let the free market free the free market, those guys would go out of business and there would be no problem. How can regulation solve a problem that regulation created?
  • Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.


    I'm sorry, is someone forcing banks to make loans to people with that much debt?
  • Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.
  • Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.


    This means "payments on total debts" not just "total debts", right? If it doesn't , uh-oh...
  • Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.


    43% is total debts (student loan payments, car loans, ect. plus would be mortgage payment). When I bought my house last year the lenders my mortgage broker was dealing with would allow up to 45% debt to income ratio. Then again, I had a credit rating of 800.
  • Screw the banks. We're buying everything outright with cash now. It's amazing once you break the cycle of debt, and interest payments. It sucked at first but now we own everything outright, and in a few years will own our own home we are building. My bank account went from going from check to check, to having $1000's in it.

    You don't need the banks, they need you. Take 3-5 years of living modestly, and save your money. Pay off your car loans, buy your own property with cash, build a modest house ($35-50k materials). You don't need 2500 sqft, and a 30 year mortgage making you a serf to a bank.
  • So we're going to keep legislating out self destructive behavior? Cool, that always works.
  • The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.


    Seems like you wouldn't be able to buy a house until your car was paid off, either. God help you if you have student loans.
  • The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.


    That rent being paid is also income
  • Farksteron: The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.

    That rent being paid is also income


    Yeah, but it's at 43%. If I owe $400 a month on my mortgage and they're paying me $500 a month for the house and paying for the utilities and upkeep, that's going to hurt my ability to get a mortgage.
  • Farksteron: The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.

    That rent being paid is also income


    Lenders will generally allow for 75% of rental income to be counted towards debt to income ratio.
  • no more loans where the principal due increases over time,

    Huh? All loans work this way. My payment stays the same, but I'm currently paying about $40 in principle more each month than when I made my first payment.
  • Pincy: Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.

    I'm sorry, is someone forcing banks to make loans to people with that much debt?


    No, the government is underwriting loans so that there is the possibility of huge profits with no potential loss, as that will be underwritten. The Fed and the Treasury department have been in bed with bankers for too long. None of these regulations are going to prevent bankers from making more money than they deserve. They will end up limiting the ability of middle and lower income folks ever building or maintaining any wealth. But don't worry about bankers and government officials - they will be just fine and their wealth will be untouched and never at risk.

    Meanwhile, the flow of campaign contributions from bankers and financiers will continue unabated. If you want any influence with politicians and regulators, you need to be able to pony up come campaign season.
  • Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.


    And this is how those hated regulations get enacted. You are blaming the government because they did not stop the banks from being morons?
  • As a foreclosure defense attorney this makes me sad and happy. Sad because of the potential for business drop off, happy because this adjustable rate, subprime, lost note BS never should have happened in the first place
  • Pincy: Cold_Sassy: FTFA: In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.


    WTF?? When I bought my house (before all of this B.S.started) the maximum allowed by any reputable morgator was 28%. No wonder the same old sh*t keeps happening. Good jerb, Gubmint.

    I'm sorry, is someone forcing banks to make loans to people with that much debt?


    No, they're not. However that is the whole point of this article: Banks [once again] making shaky loans that will inevitably be defaulted on and paid by financially-responsible taxpayers.

    I also agree with Baels, and pay cash for most everything I buy. He/She is absolutely correct. I don't like being in dept up to my a*s. I don't care about the Jones's.
  • So does Rent-a-Center go out of business later today or is it just limited to mortgages?
  • Tommy Moo: no more loans where the principal due increases over time,

    Huh? All loans work this way. My payment stays the same, but I'm currently paying about $40 in principle more each month than when I made my first payment.


    They're talking about the outstanding principal balance increasing, not the amortization effect where constant payments on a lowering balance means more goes to principal. There are some mortgages out there, such as some option, ARMs, where the debtor can pay less than the interest each month.
  • thurstonxhowell: The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.

    Seems like you wouldn't be able to buy a house until your car was paid off, either. God help you if you have student loans.


    A new car payment and a monthly payment on $50k in student loans will total maybe $500/month. If you're only bringing home $1150/month, then yeah, you probably aren't in a position to buy a house. Also, you shouldn't have bought a new car.
  • If we would just all use bitcoins, the fiat-free currency of the future, we could all go Galt and enjoy our beef jerky, dried strawberry and incredibly complicated payment methods for a burrito at a NYC restaurant. Bitcoin: where getting 50% of your investment back from a ponzi scheme is profit!

    Bitcoin!
  • The Jami Turman Fan Club: Wait, you can have no more than 43% of your income as debt? So I can't buy a new house while renting out my old one? That'll suck. My sister had to rent out her old house for two years before it finally sold.


    Seems you ought to be able to list the rental money as "income," which would bump your debt to income rate back down.
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