The government has finally decided to take some steps to prevent the housing bubble and crash we’ve come to know and love. They realized that the old ways have got to go and new rules need to be put in place.
I think it’s important you know what’s on the table for the future so I want to give you the bullet points early on. Knowing what’s in store will help you build your business around what’s needed (and the holes that Uncle Sam leaves open).
Here are the main changes:
– Banks who want to sell mortgages as securities must maintain a stake in them.
– Borrowers spending small percentages of their income on mortgage payments wouldn’t need to be protected.
– Large down payments wouldn’t be needed in every case (to help the recovery).
These key moves are meant to close some of the shady business practices banks were using in the pre-crash days.
I don’t know how good the government is at preventing crashes, but now I know how good we are at cleaning them up. Only time will tell if these new laws (which haven’t passed yet) will make any kind of a difference.
Please give me your opinion on these changes as I’m still really confused about them.