No, it’s not necessary at all.

No, it’s not necessary at all.

Assuming you want to use a dwelling as security, here are a few other heinous consequences of this bill, a:

1. Because “dwelling” is not defined and people have been known to dwell in them, points 2-5 below could apply to any loan you want to make that is secured by a:
• Self-contained recreational vehicle or camper, or
• Commercial building or store with a kitchen(ette) and bathing and sleeping areas.

Note: It doesn’t matter if the dwelling/property
is vacant, you live in it, rent it out, or
use it for your business.

2. If you need help with medical expenses, mortgage payments, education, or want to buy a home, you won’t be able to borrower from family or friends.

3. If you have family members or friends who need help because they are unemployed, disabled, or want to purchase a home, you won’t be able to make them a loan.

4. If you need to use your dwelling’s equity to pay bills or buy food during an income hardship (unemployment, illness, death of a spouse), you must apply for a loan with a regulated lender. This lender will be required to deny your loan request, if the government’s ‘to-be-established’ formula says you can’t afford repayment with your reduced income. Effectively, the equity in your residential properties will be locked away with no way to access it in an emergency.

5. You can only finance the sale of 1 owned dwelling in any 3-year period. Any additional non-cash sale would have to be financed by a regulated lender. If your property doesn’t meet standards established by the lending industry (as is the case for many homes in rural America), the property would be unsaleable during that 3-year period.

Assuming you want to use a dwelling as security, here are a few other heinous consequences of this bill, a:

1. Because “dwelling” is not defined and people have been known to dwell in them, points 2-5 below could apply to any loan you want to make that is secured by a:
• Self-contained recreational vehicle or camper, or
• Commercial building or store with a kitchen(ette) and bathing and sleeping areas.

Note: It doesn’t matter if the dwelling/property
is vacant, you live in it, rent it out, or
use it for your business.

2. If you need help with medical expenses, mortgage payments, education, or want to buy a home, you won’t be able to borrower from family or friends.

3. If you have family members or friends who need help because they are unemployed, disabled, or want to purchase a home, you won’t be able to make them a loan.

4. If you need to use your dwelling’s equity to pay bills or buy food during an income hardship (unemployment, illness, death of a spouse), you must apply for a loan with a regulated lender. This lender will be required to deny your loan request, if the government’s ‘to-be-established’ formula says you can’t afford repayment with your reduced income. Effectively, the equity in your residential properties will be locked away with no way to access it in an emergency.

5. You can only finance the sale of 1 owned dwelling in any 3-year period. Any additional non-cash sale would have to be financed by a regulated lender. If your property doesn’t meet standards established by the lending industry (as is the case for many homes in rural America), the property would be unsaleable during that 3-year period.

One (of many other) HUGE thing Bill Bronchick failed to mention in his simplified summary is that in order to lend money to your child (secured by his/her home), say to help with your grandchild’s education, you would have to “be qualified and, when required, registered and licensed as a mortgage originator in accordance with applicable State or Federal law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.”

One (of many other) HUGE thing Bill Bronchick failed to mention in his simplified summary is that in order to lend money to your child (secured by his/her home), say to help with your grandchild’s education, you would have to “be qualified and, when required, registered and licensed as a mortgage originator in accordance with applicable State or Federal law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.”