Florida Real Estate and Mortgage: Get Your HUD Out Of The Way…
By: Jim Eggers
FLORIDA — Feb. 19 (FreeRateUpdate.com) – I wrote in an article a few weeks back about how I think regulation has a purpose and that it’s now time for government to get out of the way and let the markets work. The Housing Market needs to correct itself and will, if Washington regulators leave it alone. Anytime I read about regulation, my ears perk up and tell my brain to ask… what freedom did we lose this time? Here’s my case and point!
In 2008 congress gave HUD (The Department of Housing and Urban Development) the authority to step in with their own rules should or when they feel that state laws are to weak to properly regulate mortgage originators. On the surface this sounded good, as it would fall under the SAFE ACT (the Secure and FAIR Enforcement Mortgage Licensing Act). The problem we are now faced with is this. It’s HUD’s interpretation of who is and who is not acting as a mortgage originator.
If you are thinking that this won’t have an effect on you and your local economy… think again. Here’s why! In HUD’s proposed regulation it will ONLY exempt homeowners. Remember, mortgage originators (mortgage brokers) are required to be licensed, have back round checks and finger prints… the whole nine yards. This means that homeowners would not have to go through all that… should they want to offer their home buyer seller financing.
Ahhh! Seller Financing… isn’t that a SOLUTION to a problem that helps people buy homes and other types of real estate? Yes, it is. It also happens to be the way many Real Estate Investors buy and sell property. In some cases, the only way due to today’s current credit crunch and restrictions banks place on RE-Investors.
If you where to hold the keys to the door that opens up the Housing Market healing process… the master key will be RE-Investors re-entering the market! I’ve said it before, and I’ll say it again. When housing inventories go down… home values go up! By the way – I believe HUD’s proposal is still open for public comment until the 5th of March.
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