"State won’t review old loans; No check on work of rejected brokers" by Todd Wallack, Globe Staff | July 14, 2009
The state Division of Banks, which recently found hundreds of Massachusetts mortgage industry employees had criminal records or serious financial problems, said it has no plans to investigate whether loans handled by those workers involved fraud or took advantage of borrowers.
“This type of review is not practical,’’ said Jason Lefferts, a spokesman for the agency, “as [mortgage loan] originators tend to change employers quite often, and do not maintain possession of the loan files, which stay with the employing company.’’
Until recently, felons or people with poor credit were not explicitly prohibited from working as loan officers for lenders or mortgage brokers.... Many had bad credit or criminal records, including felony convictions for bank, insurance, or securities fraud.
The attorney general’s office declined to comment on the Division of Banks’ decision, saying it was not involved in establishing the new regulations. “Our office’s efforts in this area have been focused on enforcement actions, advancing legislation, and promulgating regulations,’’ said Amie Breton, a spokeswoman for Attorney General Martha Coakley’s office.
Boston real estate attorney Chris Kehoe said he understands both sides of the argument over whether to review loans made by people who have since been rejected for licenses. “We are dealing in a climate with terribly scarce economic resources,’’ said Kehoe, chair of the real estate practice group for Boston law firm Robinson & Cole LLP. “I am not sure we can afford to look back too hard.’’
Unbelievable.
But....
“I paid my debt to society,’’ said the employee, who asked not to be named to avoid embarrassing his family. “I understand and respect the need for licensing to prevent fraud, but my transaction happened over 20 years ago. . . . I was a different person, and it was a different time.’’
I'm stunned by the arrogance when so many nonviolent drug users and other innocent people are thrown in the hole, or how some charges seem to stick with people for a lifetime.
Not only that, Mass. will front you the money via a loan (don't they loot enough tax dough) to deal with the crooks.
"Mass. OK’s advance on home buyer tax credit; $8,000 loans can be used for closing costs and down payments" by Jenifer B. McKim, Globe Staff | July 15, 2009
Hundreds of first-time home buyers in Massachusetts will be able to get an advance on an $8,000 federal tax credit, allowing them to apply the money to down payments and closing costs, under a new program unveiled by Governor Deval Patrick yesterday.
Under the plan, the state will loan $8,000 to eligible borrowers who buy a home before Dec. 1 and finance it through the state’s affordable housing bank, MassHousing. The loans will be interest free if repaid by June 1, 2010. By that time, buyers will be able to claim the $8,000 federal tax credit included in the federal Housing and Economic Recovery Act of 2009.
Banks get TRILLIONS and they can't even cut a first-time home buyer $8,000 bucks. Even the state is tossing away millions! This is just hurtful at this point.
“That’s phenomenal. That should kick in some lower-end buyers who haven’t been able to get into the market,’’ said Ronn Huth, owner of Buyers Choice Realty in Wenham. “Most of the buyers we are working with are looking forward to claiming the $8,000 tax credit.’’
MassHousing estimates it will be able to help between 650 to 1,000 people by the end of November, using $5 million set aside for the program. The state bank, which sells tax-exempt bonds to raise capital, grants loans to those who meet certain income guidelines, depending on household size and region.
What a racket: Municipal Bond Milking
For example, an individual or couple in parts of Worcester County can qualify if they earn no more $103,800. “These loans will both help prospective home buyers achieve the comfort and stability of homeownership for their families and also stimulate the Commonwealth’s economy through increased home sales,’’ Patrick said.
Massachusetts joins more than a dozen states nationwide that have developed their own bridge loans under a plan announced by the US Department of Housing and Urban Development in late May. At that time, federal officials said home buyers could apply their tax credit toward new home purchases when financing through the Federal Housing Administration or through state and local housing finance agencies.
Borrowers with an FHA-insured loan are still required to provide a 3.5 percent down payment before they can use the tax credit for any additional payment or closing costs. Under the Massachusetts program, the $8,000 can be used to cover an entire down payment. Borrowers can purchase a one- to four-family home and must use it as a primary residence.
Gary Dwyer, a broker-owner of Buyer Agents of Boston, said the tax credit has prompted many of his clients to consider buying a home despite the down economy. The MassHousing program should help some borrowers close their deals, he said.
I see on your application it says no job? Then no deal!
“For first-time home buyers, $8,000 is a lot of money,’’ Dwyer said. “It is one of the key reasons a lot of people are out there looking.’’
Foreclosures are surging, the unemployment rolls get longer, and this guy is spouting s*** spew! Sigh.
The federal tax credit is intended to stir the nation’s sluggish housing market, and it may be working. First-time home buyers made up 29 percent of real estate transactions nationwide in May, up 10 percent from the same time last year, according to the National Association of Realtors....
Yeah, whatever you real estate guys say.
