I just received word from Alexandra, who works in the Banking division at Senator Dodd's office [D-CT] that, yes, YSP can be collected on "prime or near-prime loans" and that points and fees can be financed into these 'non-high cost mortgages'.
This is good news. Why? This is good news because the S 2452 Bill is basically eradicating subprime mortgages. Honestly, I have no problem with that. My only fear is that this will also eradicate, if passed in its current form, any legitimate Stated Income loans for self-employed borrowers or any Investment loans for investors.
So, ultimately, I must confess that I am not entirely opposed to such a bill. However, I think the market and 'reasonable regulation' should decide. Who knows....maybe this is reasonable regulation?
I would like to state that the mortgage broker will not be eliminated as a result of this bill. Why did I not understand this yesterday? Well, I read the bill in its entirety, and the legaleese got me. However, I did blog a bit prematurely on it.
Thanks for your patience!
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