This will be bad news for self employed borrowers who like to make a lot of deductions on their tax returns, and are looking for a Mortgage North Carolina.
Most realtors are 1099'ed, and this will not be good for those looking to purchase/refinance their homes.
I'm placing this post because not many realtors or loan officers are aware of the new law that will go in effect January 1st.
It's bad that the state government is interfering into the lending practices, and even worse when the legislature acts like an economist. This may ruin the economy here in NC as it is/was one of the top places to start a 'successful business'. This may still be true, but let's see how they will receive home financing
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H1817v6.html
I just posted this comment on a post from Nevada where they also are facing the same issue.
Minnesota has done about the same thing and as you pointed out, in two short months, I have seen 4 good quality borrowers unable to get mortgages because of the new law in our state.
I heard our Attorney General was asking the state mortgage association why after her brilliant changes has the foreclosure rate continued to rise. She ain't seen nothin yet! Without stated income and as a result of no prepayment penalties in the state, self-employed and sub-prime borrowers who's' ARM are going adjustable in the near future will have to grin and bear it. Many of them will simply walk away as they cannot afford the higher payment.
Isn't it great when government gets involved in the private sector!!
yea I knew Nevada/Minnesota was facing this already.
Not many loan officers and realtors are aware of this in NC.