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Mortgage Banking Solutions Managing Partner David Lykken on the factors holding back banks from offering more mortgage loans.
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And says even though these rates are low watch -- to make it tougher -- to land and that's gonna make things worse.
So how much worse.
Well you know what if the government just would get out of our business I think we -- these numbers the fact that.
Activity -- sales are shooting -- it shows that there's -- I described it this hopeful those numbers those sales show hope.
The problem is there's a lot of frustration out there people are just frustrated by the fact that we're not getting into it that the -- -- spinning our wheels.
That is -- -- a lot of uncertainty.
And in uncertainty.
You don't have stabilization of pricing you don't really have consistent data -- this year in month in a month out a home sale.
So when there's when Democrats turn do you guys it is being -- just isn't tight fisted and not lending.
And that -- reputation by the way is right up there with congress and TV anchor.
Which is to only -- actually my company.
Bombed what it what -- you little of what area.
Well first of all it's it's understand -- the you know the mortgage industry went out.
Made a lot of loans and we got caught up in a bigger problem he -- we've both you all know about that -- now we're working on a recovery and what the demo.
That's and then there's like so I write down and I know these kids -- -- but it did make -- -- -- that -- -- dividends.
You've gone the other way from being a lending to anyone -- calls to now lending to known.
Well and here's why.
When Richard -- -- that the director of the CF PB was announced by Obama they were sitting in what is and what is a seriously be -- -- -- because I'm sorry consumer financial protection -- OK and so that's the regulatory body that has been put in charge of a whole lot of bureaucracy.
To regulate the mortgage industry so here's a story that's behind this story really -- They announced his appointment and days and -- -- announcement they said.
The Asians who almost lost their home due to trickery and abuse of the mortgage industry now we've -- been going what.
And then we go well defined the term abuse director accord great and he has not direct Eddie given us a definition so.
In a vacuum of leadership when we're not being told what is abusive and what's not what's the natural tendency -- every single vendor out there.
They're gonna pull back and that's why a lot of the rates are below -- but homes -- getting funny.
-- will come down could you update me on that I know.
It's is now among 20% now what is it what's the rule out some on this -- that -- weathered perfect credit rating have to be this on them Jesus something when it went as.
And have -- Well there's -- -- -- we can't get into that without talk about regulation has two more regulations that are out -- QRM which we think may be.
Are -- written that we're we're required 20% down on every loan that just wasn't gonna work -- any kind of housing recovery we're not gonna have an economic recovery without -- housing every.
So that was not -- we have a new regulation coming out called Q and that's gonna define underwriting standards.
In it is gonna Begin to establish.
28%.
Debt to income ratio in other words your payment is give me your payment -- -- your payment on your mortgage should not exceed.
28%.
Of your.
Period your gross monthly taxable income.
The 38% ratios take all your debt put it together and that's what should not exceed your total indebtedness including you know mortgage OK so those are ratios that we've had around for years the United States and -- -- -- And we're now -- jump on it makes sense to me David thank you always good seeing.
Solid.
