Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Before a mortgage is approved I believe that people should have to attend a class in their native language and pass a test on the fundamentals. This way we would know that people would have an understanding of what they are getting into and be able to handle problems a little bit better. What do people think about this idea?
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
Although I can see how it might be a good idea in theory, in reality you open a whole can of worms with regards to qualified applicants and the ECOA, IMO. Beside, I've seen some pretty educated and experienced people get sold on some pretty crappy loans. I see what you are trying to do, but I don't think that more hand holding and nanny state legislation is going to help. I would like to see the barriers of entry into the mortgage profession a bit higher, and just see lenders get back to good old responsible lending, which they are.
Personally, if we had been required to attend a class and take a test before receiving a mortgage, I not only would have been insulted, I would have quickly taken my business elsewhere and told everyone I knew to avoid this institution.
IMHO, we don't need more oversight, rules, laws or regulations to protect people from themselves. We need to start holding them responsible for their actions. Companies loaning money have a responsibility to make sure that the people they are loaning it to are credit-worthy and have the ability to pay. Consumers have a responsibility to make sure that they understand what they are signing, and what they are committing themselves to.
Adding a class and a test won't keep unscrupulous lenders from loaning money to unqualified buyers, and it won't stop unqualified buyers from getting in over their heads... after all, none of it's their fault anyway, and someone told them that they could afford $2,000 a month payments on their $1600/month take home pay. The only people who would really be affected are the people who will be inconvenienced and had an understanding of what they were getting into in the first place...
IMHO, we don't need more oversight, rules, laws or regulations to protect people from themselves.
Don't flatter yourself. It's not you the bank is trying to save by requiring you to take a home ownership class.
Quote:
We need to start holding them responsible for their actions. Companies loaning money have a responsibility to make sure that the people they are loaning it to are credit-worthy and have the ability to pay.
Having the ability to pay doesn't mean that the people have much of a clue what they're getting themselves into when they are first time home buyers. Home ownership comes with a plethora of costs that many people don't research and are unprepared for even if on paper they make enough money. All the credit worthiness can quickly go to hell if people don't adjust their spending habits and priorities... and this something the class can explain.
Quote:
Consumers have a responsibility to make sure that they understand what they are signing, and what they are committing themselves to.
Of course! At the same time the banks are looking out for their interest (and as a side benefit it can improve society at large to have more first time home buyers walk into home ownership with eyes wide open).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
