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Old 03-23-2008, 06:43 AM
 
116 posts, read 412,440 times
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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?
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Old 03-23-2008, 09:15 AM
 
Location: CNJ/NYC
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That is already a requirement for first time home buyers (FHA loans, at least), and for reverse-mortgage applicants.
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Old 03-23-2008, 10:26 AM
 
Location: South Carolina
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Quote:
That is already a requirement for first time home buyers (FHA loans, at least), and for reverse-mortgage applicants.
We didn't have to do that and we got an FHA loan at the end of Jan.
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Old 03-23-2008, 11:29 AM
 
Location: central, between Pepe's Tacos and Roberto's
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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.
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Old 03-23-2008, 12:53 PM
 
Location: CNJ/NYC
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Quote:
Originally Posted by mystree View Post
We didn't have to do that and we got an FHA loan at the end of Jan.
Perhaps your bank was lax in this regard. My bank requires it for first time FHA home buyers.
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Old 03-23-2008, 02:35 PM
 
Location: South Carolina
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Perhaps your bank was lax in this regard. My bank requires it for first time FHA home buyers.
I went through Wells Fargo.Maybe.
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Old 03-23-2008, 06:36 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,668,261 times
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this isn't a FHA requirement. It is only a lender requirement.

if the person has really bad credit then the Underwriter may request it, but I have yet to see this happen.

Quote:
Originally Posted by TwiloMike View Post
That is already a requirement for first time home buyers (FHA loans, at least), and for reverse-mortgage applicants.
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Old 03-23-2008, 06:53 PM
 
Location: CNJ/NYC
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Quote:
Originally Posted by renriq02 View Post
this isn't a FHA requirement. It is only a lender requirement.

if the person has really bad credit then the Underwriter may request it, but I have yet to see this happen.
We do it frequently.
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Old 03-23-2008, 07:52 PM
 
51 posts, read 183,920 times
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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...
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Old 03-23-2008, 08:20 PM
 
Location: CNJ/NYC
1,240 posts, read 3,772,229 times
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Quote:
Originally Posted by Movin2CT View Post
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).
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