Business Week's November 5th issue will have an article in the Finance section titled "These Tough Lending Laws Could Travel North Carolina's progressive protection laws for borrowers may become a nationwide model"
Click the link to read the full article from Business Week. I wanted to see what the North Carolina community on Active Rain had to say on the subject. I searched AR Blogs every which way, and found only two articles:
North Carolina Real Estate Agents:
Tracy Santrock, an Active Rain heavy hitter closing in on 90,000 points, wrote an article on September 7th titled Lenders Beware -North Carolina Law Forces Changes to Lending Practices . She has a link to the actual bill out of committee.
As an Accredited Buyers Representative, Tracy likes the legislation.
North Carolina Loan Officers:
Robert Enriquez' article North Carolina Stated Income programs ending January 1st pans the new law. Robert doesn't like the fact that stated income loans will no longer be available to Real Estate Agents, who receive 1099 income.- Author note: Don't they have child labor laws in North Carolina? LOL
North Carolina has had a Predatory Lending Law on the books for seven years. It was signed in July 1999, and implemented in 2000. Apparently it's not had the effect the lawmakers intended, because they decided to strengthen it substantially this session. There's an article on the existing law titled Assessing the Impact of North Carolina's Predatory Lending Law. Clickthe link; it's worth reading.
Here's my take on this. Secularism has become the de-facto religion of politics and public education. As a former teacher, I used to be able to point to Moses' 10 commandments, and tell my students that it's just plain wrong to lie, cheat and steal. You can't do that any more.
Peer pressure to do the right thing used to put cultural brakes on unethical conduct by individuals and the corporations by whom they were employed. No more.
The Real Estate and Lending industries will be the subject of increased regulation as States and the Federal Government try to re-create through legislation what Moses brought down from the mountain on stone tablets millenia ago. Thou shalt not steal... Thou shalt not bear false witness...
And that's the real estate opinion of this Tucson, Arizona mortgage lender.
We are already seeing this! There are bills being passed here in IL on Brokers and Bankers-stated income loans and more. We have had anti-preditory lending laws in place for years. Perhaps teh industry should be regulated on a Federal level.
:-)
hey mike...that's my 2yr old son! thanks for including me in your blog!!!!
I think the new laws are tough...and they should be given to certain lines of businesses.
NC is known for being one of the best states to start a business. The irony is that they will have no more stated programs in 2008
Elizabeth, thanks for being the first to comment. Ours is a politically correct society, and the first instinct is often to do what one person did in Jesus' story about the Good Samaritan--avoid the mess, look away, move to the other side of the road and keep on going.
I used to think that putting my name to something controversial would limit my business. As I watch my 7 grandchildren grow up, though, I'm less concerned about me and more concerned about them and the legacy I'll leave them.
Thanks for commenting!
Kris, I don't believe that more government is the answer. Just the opposite. Let's govern on the micro-level. Government is ONLY AS GOOD (pardon me yelling, there) as the individuals that make it up. What YOU do, and what your friends at your mortgage brokerage do, is the first line of integrity.
Robert, he's a cutie! Must take after his mother. LOL
Bill & Barbara Jo, you're right on the money. Are loan officers in Florida required to take educational courses like real estate agents? No such requirement here in AZ!
Mike in Tucson
Hi Mike,
We knew that legislation was going to come down at some point. I like that the fact that you've looked at this issue from both perspectives and drew your own conclusion.
Thanks for commenting, Tracy. It pays to reserve judgement until the facts are all in. I appreciate your comoment.
Mike in Tucson
Robert, thanks for commenting. My views on the subject of teaching the importance of the 10 commandments and their application to business and personal life were shaped in part by a friend in Grand Rapids, Dr. Tony Fortosis, former prof at Cornerstone.
Mike in Tucson