I know that when reading the full text of most legislation, the eyes of even the most consummate politico can glaze over, so I've parsed out a relevant section of this Bill:
Sec. 5-6 Verification of borrower's ability to repay.
(b) For all residential mortgage loans, the borrower's income and financial resources must be verified by tax returns, payroll receipts, bank records, or other similarly reliable documents. Nothing in this Section shall be construed to limit a licensee's ability to rely on criteria other than the borrower's income and financial resources to establish the borrower's reasonable ability to repay a residential mortgage loan; however, such other criteria must be verified through reasonably reliable methods and documentation.
A statement by the borrower to the licensee of the borrower's income and resources is not sufficient to establish the existence of the income or resources when verifying the reasonable ability to pay
There are certainly documented instances where stated income loans were improperly implemented by unscrupulous brokers and bankers, but this broadly written section will not preclude foreclosures or prevent stated or no documentation loans since banks are exempt. According to recent study 62% of all loans are through a mortgage broker, if this law passes it will limit loan products and services to our consumers, it’s also unfair that banks are able to offer “stated” and “no documentation” loans to the same consumers that we have served for many years.
Let's keep the playing field level.
We, the undersigned, call on the Senate to vote NO on SB1647, HB1478 and HB4050.
The NO VOTE ON LAWS: SB1647 (HB1478 & HB4050) petition to Sentor was written by Rick and is in the category Government at GoPetition.