Hard Money and Federal Guidelines on Sub Prime Mortgages

<h1>Hard Money and Federal Guidelines on Sub Prime Mortgages</h1>Author: <a title="Leonard Rosen" href="http://www.articlesbase.com/authors/leonard-rosen/39373.htm">Leonard Rosen</a> The country's leading hard money expert, Leonard Rosen President of Pitbull Mortgage School shares his views on the new Federal guidelines for sub prime mortgages.

As many industry insiders already know, the sub prime and hard money mortgage industry is going through significant changes. A number of key Federal Agencies have adopted a new set of guidelines to insure and protect the consumer.Never has the sub prime industry and hard money mortgage market been impacted by the recent explosion of mortgage defaults and high foreclosure rates.

Many of the recommendations buy most accounts, are ambiguous and open to interpretation. However, the report does offer some needed guidance in a tumultuous market. Real estate values for most of the country have dropped significantly especially in areas of California, Nevada, Arizona and Florida. In addition, foreclosure rates are at a 20 year high.

The new Federal Guidelines states that a mortgage lender should evaluate the risk factors of a adjustable rate mortgage loan using a fully indexed rate rather than underwriting the loan based on the initial start rate. In my opinion, I think this is a good idea to adopt. The proposal goes on to address increasing the documentation of income requirements in determining the borrowers ability to repay.Obviously this proposal is geared to protect the consumer. The proposal does not affect all lenders nor does the issuing body specifically address hard money loans for consumers in default or foreclosure. I fully agree with the premise of making sure there is a loan suitability requirement. Having said that, the proposal does not address the issue of a sub prime borrower who needs a short term hard money mortgage to cure a a default.

I am all for protecting the consumer from fraud and deceptive practices, but when the bureaucrats begin to regulate and mandate lending practices, we should all take cover.About the Author: President of Pitbull Mortgage School, the largest organization in the country teaching hard money to mortgage brokers and hard money lenders, Leonard Rosen was previously the CEO of a large medical group with 6 clinics. Also the former anchor of Financial News Network and host of the Leonard Rosen Show. 
 
A Lifetime member of Who's Who in Business, and author of "From here to Financial Freedom," Mr. Rosen is a renowned National Speaker who has been featured in CNN, Forbes, American Chronicle and many local and National publications. Currently Mr. Rosen is a private consultant to numerous mortgage companies. A former Army Ranger, and a graduate of both the University of Minnesota and Shattuck Military Academy. 
 Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/mortgage-articles/hard-money-and-federal-guidelines-on-sub-prime-mortgages-268990.html" title="Hard Money and Federal Guidelines on Sub Prime Mortgages">Hard Money and Federal Guidelines on Sub Prime Mortgages</a>

The country's leading hard money expert, Leonard Rosen President of Pitbull Mortgage School shares his views on the new Federal guidelines for sub prime mortgages.

As many industry insiders already know, the sub prime and hard money mortgage industry is going through significant changes. A number of key Federal Agencies have adopted a new set of guidelines to insure and protect the consumer.Never has the sub prime industry and hard money mortgage market been impacted by the recent explosion of mortgage defaults and high foreclosure rates.

Many of the recommendations buy most accounts, are ambiguous and open to interpretation. However, the report does offer some needed guidance in a tumultuous market. Real estate values for most of the country have dropped significantly especially in areas of California, Nevada, Arizona and Florida. In addition, foreclosure rates are at a 20 year high.

The new Federal Guidelines states that a mortgage lender should evaluate the risk factors of a adjustable rate mortgage loan using a fully indexed rate rather than underwriting the loan based on the initial start rate. In my opinion, I think this is a good idea to adopt. The proposal goes on to address increasing the documentation of income requirements in determining the borrowers ability to repay.Obviously this proposal is geared to protect the consumer. The proposal does not affect all lenders nor does the issuing body specifically address hard money loans for consumers in default or foreclosure. I fully agree with the premise of making sure there is a loan suitability requirement. Having said that, the proposal does not address the issue of a sub prime borrower who needs a short term hard money mortgage to cure a a default.

I am all for protecting the consumer from fraud and deceptive practices, but when the bureaucrats begin to regulate and mandate lending practices, we should all take cover.

President of Pitbull Mortgage School, the largest organization in the country teaching hard money to mortgage brokers and hard money lenders, Leonard Rosen was previously the CEO of a large medical group with 6 clinics. Also the former anchor of Financial News Network and host of the Leonard Rosen Show.

A Lifetime member of Who's Who in Business, and author of "From here to Financial Freedom," Mr. Rosen is a renowned National Speaker who has been featured in CNN, Forbes, American Chronicle and many local and National publications. Currently Mr. Rosen is a private consultant to numerous mortgage companies. A former Army Ranger, and a graduate of both the University of Minnesota and Shattuck Military Academy.

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Article Tags: Real Estate Investor, Mortgage Broker Training, Mortgage School, Mortgage Broker School, Pitbullmortgageschool, Professional Mortgage Broker, Mortgage Broker Professional, Hard Money School

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Related Q&A

1. Honest Answer (15:02, 24.09.2008)

Went to a Pitbull Seminar. We were promised no sales pitches by Pitbull (only by sponsors) and a 6 hour continuing education certificate for Dept of Real Estate so I expected some meat on the bone. Instead, Rosen drops in price quotes for his services all day, spends time handing out a few $100s to get crowd excited (they aren't and he seems surprised as if $100 should have people dancing on tables) and then doesn't even send continuing education certificate despite polite inquires. Looking back, some great sponsors but the meat was missing. Save your time and money.

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