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Economists: Bet on more mortgage rule changes

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Mortgage Broker News | 22 Feb 2012, 08:00 AM Agree 0
A new poll suggests economists are increasingly convinced the government will move to ratchet down mortgage rules in 2012 – that even as the broker channel ramps up lobbying efforts to block the move.
  • Daryl Woodill | 23 Feb 2012, 05:44 AM Agree 0
    It astounds me that it is the potential home-owners who are paying the price for increasing credit card debt. It is very obvious that the reason why the public's spending out of control is due to the amount of credit that banks and credit card companies thrust upon us! What the government needs to do is tighten up on qualifications for mortgage instead of shortening amortizations - mortgages should be qualified on available credit and not just credit balances. This would cut back significantly on credit card debt as people would start cancelling unused credit cards or not sign up for them at all! But the banks and credit card companies won't let that happen because they are making too much money off of our spending - and that my friends is how the cookie crumbles. Sad.
  • AB Broker | 23 Feb 2012, 06:50 AM Agree 0
    Daryl, I agree with you. Sadly, a person with a TDSR (total debt service ratio) of 50%, meaning 50% of their income is going to service those debts, yet the vehicle finance companies will extend more credit to facilitate the purchase of a new car. This is CRAZY!!

    I had a couple on Sunday with 20 credit cards between the two of them, $80+K total, not including the vehicle finance and two student loans. That is more than their combined annual salaries! My suggestion was to sell the home, take the 10% equity and payout the cards and rent. Their response, we don't want to go back to renting. What?? It's better than the alternative!!

    Can't fix stupid!

    I'm happy to hear that CAAMP is out there speaking on behalf of their membership!! Keep it up.

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