Financial Reform is a hot topic that has mainly just blown into a volcanic cloud looming over us, but not started dissipating or settling down on top of us really yet.
Wikipedia defines Campaign Financial Reform as, “Campaign finance reform is the common term for the political effort in the United States to change the involvement of money in politics, primarily in political campaigns.” This is not the same as what we are hearing about in our Mortgage Industry.
The financial reform as we are familiar with in Real Estate in Frisco, Little Elm, Plano, Prosper, and Greater Dallas is best explained by Sebastian Mallaby of CFR.org. He notes that there are two topics that are included in the focus of the reform that will likely get attention as they are agreed upon in large by the masses of politics; “They agree on the need for a bankruptcy-type solution for large financial institutions that would theoretically make taxpayer bailouts less necessary. And they agree on the case for an enhanced consumer finance watchdog that would prevent financial firms from selling excessively risky products to unsuspecting households.”
From my view of the entire situation that has rolled out over the past 8-9 years in mortgage
, and I was right in the middle of it the whole time, I believe that hindsight being 20/20, the changes and regulations that were changed because of the mortgage crisis up to now would not be recognizable as we see them today if we could go back and change them. The 2010 Good Faith Estimate change was a lot of man power and money spent for nothing. I don’t see the 2010 GFE as an instrument that has no relevance, I just do not see it being much more effective than the old GFE. In hindsight, I think that at least making all new first time buyers and maybe including buyers with credit scores below a certain range, be mandated to take a short internet or live class on mortgage before buying.
The HVCC appraisal change was probably somewhat effective, but it could have been done in more simple ways that did not cause the cut throat effect on small business appraisers that were doing a good honest job, but now are out of a job.
To sum it all up, I feel like the latter part of the changes and reforms that continue to revolve around our industry as the future goes on, will be more effective and amicable to the people involved within the industy.