Please help IBAT educate the Texas Senate on problems created by SB 987 by Lucio.  As discussed in the last Capitol Report, every first lien residential mortgage of $125,000 or less that has a variable interest rate, balloon payment or prepayment penalties would be subject to counseling prior to loan closing.  While there are definitely abuses by the subprime lenders with regard to “alternative mortgage” products (like interest only and payment option ARMs), the traditional mortgage loans made and kept in portfolio by Texas community banks are not the culprit here!  The lack of availability of counselors coupled with the additional cost of the counseling may prevent worthy Texans from getting the home of their dreams rather than protect them from a bad economic decision.

 

For more information on this issue, check out the Legislative Letter signed by IBAT, TBA, and the Texas Mortgage Bankers Association:  http://www.ibat.org/documents/07_sb987_letter.pdf

 

Then please pick up the phone or email YOUR senator to ask him or her to vote NO on SB 987!  The contact information can be found at http://www.senate.state.tx.us/75r/senate/Members.htm.  Be sure to explain how this bill would affect YOUR bank’s ability to make these smaller mortgage loans in your community.