The process of financing a business or home has become more difficult.
I just completed a three-month-long refinance of my home. I have gone through this several times in my life. Never before have I had to provide so many documents to the underwriter. I have excellent credit, but the duplication never seemed to end.
Finally, we signed our loan documents with a notary. One week later, my broker called to inform me the lenders had changed their minds. I asked why. My broker said, “Because they can.”
In the July 31 Los Angeles Times Business section, an article called attention to the number of lending institutions that change their minds on loans. In July, one in six brokers said this practice had affected their clients. In June, only one in 25 brokers said this practice took place.
My broker called again after my loan was approved to another institution to let me know that the disclosure documents you fill out has grown from three pages to 30.
In July, the Mortgage Reform and Anti-Predatory Lending Act portion of the Dodd-Frank Wall Street Reform and Consumer Protection Act went into effect. Many new regulations on lending and banking are now law.
I know a number of Realtors and brokers. They all say the same thing: more rules, more regulations.
I’m sure your readers in La Cañada Flintridge can attest to the difficulty of getting a loan.
La Cañada Flintridge