PMI and just what it accomplishes.
Posted: Tuesday, February 27, 2007
by straight talk
The State of Florida requires when a home loan exceeds 80% of the appraised value that you must escrow taxes and insurance. In my opinion this is another Free Market disaster fostered upon the majority of low paid / income workers. If you’re wealthy it matters not.
It is what it is in my opinion a protection package for the state and investors. It also allows the lender to float your funds for a year investing in whatever they deem appropriate. And if they do not pay when required or the full amount guess who is deemed liable? Rhetorically, why is it a crime for you to float but they can? It is called Selective Application.
Now what about the appraiser for the lender and their role in this? Now here is my opinion based on my experience. Just a few months ago your house was worth a small fortune and now its worth dung. In a few months if the market gets better all of a sudden it will be gold again - for lending only. Also, isn’t it strange they can’t seem to find comparible housing to base their appraisal on? So what do they do, you got it, they low-ball the value so the lender can lower the lending amount and get you into PMI. Rhetorically do we not know it’s always about money and not people? However, all the while there are houses selling for way above their appraisal and right next door in some cases. Now they will tell you this is market driven but they won’t accept “your paid for appraisal". Strange, aren’t all, I’ll say again, all appraisers licensed? Strange that while house sales have slowed prices haven’t changed that drastically when a sale is made unless financial hardship is involved.
Now just what does this accomplish. First those low waged, mostly young or retired living on a fixed income, now must and I say must pay hundreds of dollars extra a month for the mortgage. And that is even though they are mandated to have insurance to protect the -you guessed it - investor and they must pay their taxes.
So why force upon these people the mandated burden each month and forced extra expenditure? Why place that burden on them? Well if you use the argument they might not have enough to pay at year-end then you most likely shouldn’t have granted the loan to start with.
Rhetorically, one wonders what investor is lurking in the bushes ready to buy because of that Financial Boom called Foreclosure. They wealthy really have it made don’t they? They get to put you in the mess, they get to write off any loss and then they get to purchase all over again and start the cycle again.
Yes, It is a Lollie Pop World and The Coming Storm is at the Gate.
You Wonder Why then read my Blog. The answers of truth are right before us all. While I form an opinion it is always based on the information I am provided in the press, by government’s actions or non-action, or through real life experience.
Rhetorically, one might ask just when are these who run this Lollie Pop world going to search their souls and change? I’ll let you determine the answer that we already know.
Robert T. Melaccio Sr. Copyright ©2007 Robert Melacci o
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