Challenges Facing Todays Home Buyers
Have you been trying to buy a home and have been facing a number of challenges? You are not alone. The 30-year fixed rates at or below 4 percent would seem to have the real estate industry booming. However, that is not the case. Unreasonable requirements and regulations born from the sub-prime mortgage crisis are causing many qualified buyers, as well as sellers, lenders, and Realtors unjustified headaches. The culprit? The now infamous Dodd-Frank Bill authored by Sen. Chris Dodd of New York and Rep. Barney Frank of Massachusetts.
In an effort to revitalize the real estate market through regulation, this legislation has done just the opposite. It has unfairly penalized buyers, sellers, lenders and Realtors. The lenders who have always done business with integrity are now facing extra scrutiny due to the unethical practices of now defunct lenders who did not operate properly. Realtors belong to the National Association of Realtors and adhere to a strict code of ethics, taking this code seriously to serve the public well. They are dedicated to helping people buy and sell homes. While some requirements are expected from Fannie Mae and Freddie Mac, who are not without fault in the mortgage crisis; excessive regulations have created a convoluted system.
These days, buyers face extreme demands that are not all due to the lender, but a process that has become far too complicated. Lenders are no longer allowed to speak with appraisers, but must now choose an independent appraiser from an approved list. A third party, called the appraisal management company, is now involved and has the authority to require a review of the appraisal report because they do not like the comparables. They can also order new ones if those used do not meet the appraisal management company's stringent protocol for approved distances or current enough sales. This can lead to a buyer and seller renegotiating the contract several times in attempt to meet the appraisal and then the lender denying the loan due to the ruling of the appraisal management company. This happens all too often, all over the U.S.
Removing the appraisal management company from the loan process and encouraging Fannie Mae and Freddie Mac to allow underwriters to conduct business with common sense, as lenders with integrity have done for years will be a big step to improving the market. Additionally, repealing the Dodd-Frank Bill will remove unnecessary regulations that are strangling the real estate industry. So what can you do? Write your U.S. senator or congressman asking them to repeal the Dodd-Frank Bill and to remove or limit the power of the appraisal management companies in all real estate transactions.
