Wednesday, June 22, 2011

Google is cramping my blogging style.

For years I've been able to blog on the fly with two email browsers up and running.  One for and the other for  They both sit on Google platforms.  The gmail account was based on my original tcsclosing email address and so now Google doesn't want to have conflicting accounts open at the same time.

Google - You're killing me!!!

My blogs are accessed through my gmail account which I can't access without turning off my regular email, I can't swing up and grab stuff on the fly.  Why do you care?  Well, just today I was reading an interesting article that I wanted to share with you and comment upon but it takes WAY too much time to do all that signing in and signing out and back, etc. to interrupt what I am doing and so there's no blurb or link in this post but I WILL say this:

In reference to the consideration of the Qualified Residential Mortgage......

HAH..found the article with a fast Google search...this is the part that I found interesting.

"I am thoroughly disappointed that the regulators did not follow our legislative intent and instead are promulgating a rule that would restrict access to affordable mortgages in this country," Isakson said. "We don’t have a down payment problem in this country, but rather an underwriting problem. I strongly urge regulators to rework their overly rigid down payment requirement for QRM. If left as is, it would make recovery in the housing market almost impossible."  Blurb from Housing Wire.

While I agree that we don't have a down payment problem in this country, but rather an underwriting problem, I disagree ENTIRELY that the solution is underwriting via the title insurance examination.  WHAT?  Are you crazy?   That's not mortgage underwriting.  Trust me.  I've done both and they are entirely different in purpose and process whether automated or performed by competent human beings.

The underwriting we need is a restoration of standards and a weaning off the automated style.  I say go back to 1995 guidelines - heck, maybe go back to 1985.  Bring back humans who understand how to do risk analysis and teach a new generation how to underwrite mortgages.  Put a solid quality control program behind the process to monitor compliance and you can safely make residential loans with small down payments. 

Pull out the old books.  Go back to basics.  Scrap FICO scoring.  Teach lenders how to lend.  We are human beings.  We ought not to be judged by computer models.  Use established guidelines coupled with judgment.  We can do this.  We can restore and heal the business of mortgage lending.

No comments: