H.R. 5148: Meet The “Access To Affordable Mortgages” Act – How Congress Will Create The Next Crisis


Meet The “Access To Affordable Mortgages” Act – How Congress Will Create The Next Crisis

Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.

Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.

It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.

Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.

And we certainly can’t have that going on in the Land of the Free.

So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.

Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.

It’s as if Congress is now anti- ‘Truth in Lending’ and pro- ‘whatever the hell gets the money on the street’.

And of course, all of this comes at a time when mortgage rates are still near their all-time lows.

You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.

Isn’t paying 4% affordable enough? Nope. Not according to Congress.

More here…

Copy of the bill below…




H.R. 5148: “Access To Affordable Mortgages” Act

3 Responses to “H.R. 5148: Meet The “Access To Affordable Mortgages” Act – How Congress Will Create The Next Crisis”
  1. Alabama John says:

    This is nothing new. After the civil war, men were sent down South by bankers to do the same thing as is being done today. Those men were called Carpetbaggers. Making loans in order to grab land was their goal.
    Finally the populace men rose up against them and hung some, running the rest back up north.
    This is what will happen here again when it gets bad enough.
    The name chosen by those that saved the South and America as we know it was the KU KLUX

  2. Kathleen says:

    5% of the people, many of them foreign-cash buyers, will end up with 90% of US property, and it’ll happen quickly on both coasts. I’m expecting to receive more goofy letter from people who take weekend seminars on how to buy property with zero down. Remember those?

  3. incognito123 says:

    The banks are NOT permitted to lend depositor money in this country according to law. (Violation of the Comptroller of the Currency Act) As you are alluding to in this post, understand one thing, this IS ALL about a land grab in this country

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