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#1
01-17-2014, 11:27 AM
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Dodd Frank Act...
Really sucks...
You can't get mortgages anymore unless you have W2 income, perfect credit and you plan on living in the house, ie its your only one. Investors are just about screwed. I have a paid off house that's rented and wanted to take out a mortgage at 50% LTV to free up my cash. Nope. Another investor I know ran into the same problem, he wanted to take out a small loan on a couple houses. He has no W2 income but about $5m in paid off properties, and several hundred thousand in the bank. Nope, doesn't fit the new criteria! Anyone else running into this with their rentals? I find it amazing they won't give me a small residential loan but are falling over themselves to give me a much larger commercial portfolio loan. The mortgage market has gotten to tight, unless you fit into a very specific spreadsheet the won't originate a loan to you because they can't sell it on the secondary market. I have no idea how an investor would build a SFH rental portfolio unless they had strong W2 income, even than your limited. The old buy for cash, fix up rent, refi out the cash and repeat method doesn't seem to work anymore? That's what's holding this economy back, just like they say all the time on Shark Tank. Small business's can't get credit, the lending standards are to tight. The banks have a ton of cash they are sitting on and they can't lend it out!
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1999 SL500 1969 280SE 2023 Ram 1500 2007 Tiara 3200 
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#3
01-17-2014, 11:42 AM
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Yeah, just hand out mortgages like business cards. Anyone that wants one gets one. Who cares whether or not they are capable of honoring their pledge to pay it back.
Wait a minute..... this is what got us in the mess of 2008..... It was Dodd and Frank that proposed that everyone has "a right" to a mortgage and then the idiot GW bought in on the stupid idea.
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#5
01-17-2014, 12:18 PM
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#6
01-17-2014, 01:41 PM
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Are you banking with Citi, BofA or WF...or the Milford S&L ??
I have a US client, married & living in Ireland who last year wanted to buy a couple of rentals here in addition to the two she now owns. Fuggetaboutit!  ...As an aside, I can't tell you how pissed off the Accounting World is getting over "Comfort Letter" requests to CPAs for income & employment verification. The profession's pretty annoyed about it. Just another party to sue if the loan goes south.  AICPA - Concerns Regarding Comfort Letters/Third Party Verification
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#7
01-17-2014, 04:35 PM
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__________________
1999 SL500 1969 280SE 2023 Ram 1500 2007 Tiara 3200
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#8
01-17-2014, 04:37 PM
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__________________
1999 SL500 1969 280SE 2023 Ram 1500 2007 Tiara 3200
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#9
01-17-2014, 04:40 PM
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I am under the impression that the banks are not loaning because they can make more money in other ways. I have not heard this has anything to do with the dodd frank rule.
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.  [SIGPIC]..I also have a 427 Cobra replica with an aluminum chassis.
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#10
01-17-2014, 04:41 PM
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Whoever said there's nothing more expensive than a cheap Mercedes never had a cheap Jaguar. 83 300D Turbo with manual conversion, early W126 vented front rotors and H4 headlights 400,xxx miles 08 Suzuki GSX-R600 M4 Slip-on 22,xxx miles 88 Jaguar XJS V12 94,xxx miles. Work in progress.
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#11
01-17-2014, 04:49 PM
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I googled dodd frank and read much of the wiki listing of it. I don't see how it impacts your situation. Do you have a link to an article which explains the linkage between tight lending practices and dodd frank please?
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual. [SIGPIC]..I also have a 427 Cobra replica with an aluminum chassis.
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#12
01-17-2014, 04:57 PM
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Quote:
http://www.nytimes.com/2014/01/04/your-money/with-the-new-year-new-consumer-protections-on-mortgages.html Beginning Jan. 10, lenders must take steps to make sure you, as a borrower, can afford to repay the loan you are seeking, based on your income, debts and credit history.
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#13
01-17-2014, 05:08 PM
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- Peter.
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2021 Chevrolet Spark Formerly... 2000 GMC Sonoma 1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021 2002 Kia Rio. Worst crap on four wheels 1981 240D 4spd stick. 389000 miles. 1984 123 200 1979 116 280S 1972 Cadillac Sedan DeVille 1971 108 280S
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#14
01-17-2014, 07:01 PM
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You're a daisy if you do. __________________________________ 84 Euro 240D 4spd. 220.5k sold 04 Honda Element AWD 1985 F150 XLT 4x4, 351W with 270k miles, hay hauler 1997 Suzuki Sidekick 4x4 1993 Toyota 4wd Pickup 226K and counting
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#15
01-17-2014, 08:00 PM
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1984 300SD Orient Red/ Palomino 1989 560SEC 2016 Mazda 6 6 speed manual 1995 Ford F-150 reg cab 4.9 5speed manual
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