Real Estate News: Financial Reform Controversy

City of Hialeah - Miami Dade County

The fifth largest city in the State of Florida with an area of 20 sq. miles and a Class 1 Fire Department. Hialeah has access to most major thoroughfare - linked by I-95, I-75, the Palmetto and Sawgrass Expressways, and the Florida Turnpike. It is home to Hialeah Race Track and rich with investment opportunities for apts, homeownership, retail and the manufacturing sector. Mayor Julio Robaina serves as strong mayor. His vision to encourage business growth and quality of life for the residents maintains the City of Hialeah as one of the most desirable and stable community in Miami Dade County. See all the details at www.hialeahfl.gov

11/12/2010

Financial Reform Controversy

A Few months ago Congress passed financial reform through the Dodd-Frank Wall Street reform law.

Included in the bill one reform required lenders to keep a 5 percent interest in the loans they sold to investors. The goal was to keep the lenders from making questionable loans and passing them to investors while selling off the loans in bulk. This common practice contributed to the housing bust.

The Mortgage Bankers Association has requested to have mortgages with adjustable rates and interest-only exempted from the 5 percent rule. They claim that without an exemption to this rule the end result would be fewer customers able to obtain financing.

Apparently we will be seeing a greater degree of financial tightening when applying for a loan.