New Banking Rules

As part of the 2010 Dodd-Frank Act, several major changes to the mortgage industry will take effect on Jan 1, 2014.  Efforts by the Consumer Financial Protection Bureau, the federal agency with rule-making authority under Dodd-Frank, to reform the mortgage lending industry from the gound up has resulted in an avalanche of new regulations, totaling nearly 4,000 pages.

While the goal of the nearly dozen new regulations is to prevent another housing crisis like the one that led to the worst recession in the U.S. since the Great Depression, the sheer volume of regulations may hurt consumers more than help them.  The pendulum has swung too far the other way.  Under some of these provisions, none of us would qualify for a mortgage loan.

What it all means for the consumer?  Fewer, more difficult to obtain loans, which are more costly and statistically less risky but also less helpful for consumers.  The intent of the rules is to help consumers, but the very people they're trying to protect will be hurt.

Diabetes Breakthrough

Some great news was recently released indicating a device to regulate insulin needs for diabetics while sleeping is now being used in Europe and being evaluated by the FDA here.  Diabetics are especially vulnerable to dangerous variations in their blood sugar levels during sleep leading to coma and even death.  My oldest grandchild was diagnosed with Type 1 diabetes at age 8.  He is now 23, but the disease is ever present.  It is because of this I do a 100 mile bicycle ride each year for him with my fund raising benefitting Juvenile Diabetes Research Foundation.

Interest Rates Again

As I think I have somewhat predicted, interest rates are on the move.  Good news for those on fixed incomes!  Even though they are higher for the borrower, they are still very good rates when one looks from the historical perspective.

Good Read

If you are interested in knowing more about what goes on in Washington when significant matters arise that involve Congress and the White House, read Bob Woodward's novel "The Price of Politics."  It is definitely the most insightful book on politics I have ever read.

Summer and Interest Rates

Is summer finally here?  What a beautiful day today!  Makes one forget the weather we've had so far this spring.  Remember, summer is officially still almost 2 weeks away.

Interest rates have started to move higher.  They are still at historic lows.  If a person is thinking about refinancing now is the time.  If your home loan has a remaining balance greater than $200,000, a half point reduction in your rate makes sense.  Under $200,000 a full point reduction makes sense.