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New mortgage rules protect against risky loans

Original post made on Mar 17, 2014

Good news for people shopping for a mortgage and for current homeowners facing foreclosure because they can no longer afford their home loan.

Read the full story here Web Link posted Monday, March 17, 2014, 7:15 AM

Comments (9)

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Posted by younoborrowanymore
a resident of Livermore
on Mar 17, 2014 at 10:34 am

The intension to prevent bad debt is of course good...implementation, well, could be a bigger problem than one might think. Imagine banks/lenders being MORE onerous about qualifying borrowers - somehow estimating in today's economy how say a young couple starting out in their mid-to-late 20's will be able to repay a loan over the course of 30 years. Gotta crystal ball? This could derail a lot of sales as people walk away from purchases - esp in the fragile Cali real estate market where only the wealthy can own a property. Good luck to us all.

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Posted by Citizen
a resident of Another Pleasanton neighborhood
on Mar 17, 2014 at 10:52 am

LOL !! If you're 60 or older you can't get a loan!!

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Posted by Steve
a resident of Stoneridge
on Mar 17, 2014 at 11:33 am

Haven't heard about redlining lately have we. Give it another 5-10 years, and we'll collectively forget that the government is imposing these restrictions.

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Posted by I pay my debts
a resident of Another Pleasanton neighborhood
on Mar 17, 2014 at 1:49 pm

How about holding people responsible for actually paying the loans that they agreed to pay? Instead of letting them off without any tax consequences for all of the forgiven debt. People who lost jobs, etc, have my sympathy. Those who were just greedy and stupid do not. And the greediest of all were the realtors who collected their commissions and the loan brokers who signed off those loans while getting their fat commissions too.

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Posted by Bug Splat
a resident of Another Pleasanton neighborhood
on Mar 18, 2014 at 9:58 am

As usual, when the pendulum swings it often swings too far the other way. As well intentioned as this may be it will have some negative consequences. As stated by Citizen, people that are retired are going to be hosed. They may legitimately normally be qualified for a mortgage and benefit from the interest deductions on their taxes, but they will now not be able to get that mortgage. The other consequence is it is going to have a very negative effect in places like most of California that have very high housing costs.

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Posted by Cholo
a resident of Livermore
on Mar 21, 2014 at 1:15 pm

Last I heard the word is still spelled intention and not "instension"...BUSTED!

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Posted by Jull
a resident of Ironwood
on Jul 18, 2014 at 12:30 pm

On the one hand easier said than done on the other if implemented it will help avoid one more bubble to burst and save many of the families from the debt trap. I know many of the families even nowadays, who have to borrow money from the services like this Web Link to cover their monthly mortgage payments.

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Posted by Senior
a resident of Another Pleasanton neighborhood
on Jul 18, 2014 at 5:17 pm

Lenders (banks) may still make loans that are less than 'qualified. It will make it more difficult for many seniors to make relocations. There are a fair number of people who live off 'investments', i.e.stock dividends, interest, and rentals. This could boomerang on the rental market if 'investor' loans are tightened. A lot would have to do with 'down payment' equity. Really need 2 good jobs, but will 'cut into' those recent grads who are already financing the setting up of new professional practices i.e. dentists/docs. But it would be nice to have fewer ambulance chasing layers trying to drum up business!! This will be tougher on younger applicants...maybe now they'll have to start out in 'starter' homes, like we've been doing for generations... upgrade as their station in life upgrades. And, they'll have to 'plan' pregnancies like they should be doing anyway...each step as you can afford. Planning like a 'responsible' adult is a good thing, otherwise, suffer the consequences.

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Posted by Cholo
a resident of Amberwood/Wood Meadows
on Jul 19, 2014 at 11:41 am

seems to me you gotta be waaaaay dum not to consult with a savy attorney when borrowing waaaaaaaaaay large sums of money and i mean it...

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