Check this out!

[30A Skunkape]

From Times OnlineMarch 25, 2007

Man, 102, takes out 25-year mortgageBrendan Montague
A pensioner aged 102 has been granted a 25-year mortgage despite the fact he would have to live until 127 to pay the loan back.

The property investor from East Sussex has taken out an interest-only ?200,000 mortgage and hopes to meet the ?958 monthly repayments with income from rent as he joins a growing army of retired people hoping to cash in on buy-to-let schemes.

Most lenders set a limit at 75 years for mortgage applicants but a handful, including Woolwich, and Bristol & West, have no such restrictions. This has led to a rush of applications from older investors.

Jonathan Moore, of Mortgages for Business, an independent adviser based in Sevenoaks, Kent, told how he brokered the mortgage for the unnamed 102-year-old, one of hundreds he has arranged for pensioners. ?This is a new phenomenon.Obviously there is an element of risk if property prices and rental income suddenly fall but there is no sign of that at the moment,? he said.

Richard Stone, 75, from north London, owns 10 houses and has taken out a ?120,000 mortgage. The retired maths teacher admits such a commitment at his age can be ?quite stressful?.

Charities supporting the elderly have warned that the stress of taking out a large loan could affect health and urge pensioners to seek advice before making such a financial commitment.

Gordon Lishman, the director-general of Age Concern, said: ?It?s crucial that people think about the long-term implications.?

 

[SHELLY]

Jonathan Moore, of Mortgages for Business, an independent adviser based in Sevenoaks, Kent, told how he brokered the mortgage for the unnamed 102-year-old, one of hundreds he has arranged for pensioners. ?This is a new phenomenon.Obviously there is an element of risk if property prices and rental income suddenly fall but there is no sign of that at the moment,? he said.

This dolt appears to have overlooked the "risk" of the 102-year-old geezer dropping dead and leaving an unpaid "interest only" loan on a depreciating rental house that someone with all their faculties wouldn't touch with a 10-foot-zimmerframe.

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[Bob]

There is Federal law prohibiting age as a factor for credit decisions, isn't there?

 

[Mango]

There is Federal law prohibiting age as a factor for credit decisions, isn't there?

The article is about a mortgage type in England.
I have attended closings there and in Holland, and your interest rate is based on age, weight, health, and color of your tinkles.

But yes, here in the USA you can not discrimate against age when decisioning a mortgage loan.

 

[Bob]

I would have to think the Brits are as over-regulated concerning discrimination as we are, plus am I correct that the vast majority of mortgages there are adjustables?

 

[SHELLY]

There is Federal law prohibiting age as a factor for credit decisions, isn't there?

If the law doesn't prohibit checkout clerks at Target from getting loans for $600,000 McMansions, I don't see why it would prohibit a 100-year-old man from getting a 20-year loan....the chances are even that neither would pay it back in full.

After all, once the broker pockets his commission from the sale and tosses the loan to the investors, who cares?


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[Mango]

I would have to think the Brits are as over-regulated concerning discrimination as we are, plus am I correct that the vast majority of mortgages there are adjustables?

Wasn't so about 10 years ago. Not sure if regs have changed since then and what mortgage types are available now. I do know they had a run up in real estate like we did.

 

[Mango]

If the law doesn't prohibit checkout clerks at Target from getting loans for $600,000 McMansions, I don't see why it would prohibit a 100-year-old man from getting a 20-year loan....the chances are even that neither would pay it back in full.

After all, once the broker pockets his commission from the sale and tosses the loan to the investors, who cares?
.

Because here in this country, if the 100 yr. old man qualifies for a mortgage based on his income, we can not tell him he can not get a mortgage. He would not be able to do a no income or exotic no doc loan though for obvious reasons, but that is not considered discrimination. Telling him he can't get a mortgage if he qualifies is.

 

[Bob]

If the law doesn't prohibit checkout clerks at Target from getting loans for $600,000 McMansions, I don't see why it would prohibit a 100-year-old man from getting a 20-year loan....the chances are even that neither would pay it back in full.

After all, once the broker pockets his commission from the sale and tosses the loan to the investors, who cares?


.

Wow Shelly, all brokers now bypass wholesale lenders and sell to investors only. That's quite a change!

 

[SHELLY]

There is Federal law prohibiting age as a factor for credit decisions, isn't there?

Regulation of mortgage brokers is now starting to take shape:

"Help against predatory mortgage brokers could be just around the corner, according to Sen. Charles Schumer, (D-N.Y.), who says such aid would not only benefit the borrower but also those who own homes near foreclosed houses.

Schumer, who heads the Senate banking subcommittee on housing, told an audience in Massapequa yesterday that he and others in Washington are working on legislation to regulate mortgage brokers for the first time and to end loans offer based on false promises.

"It's despicable what some of these brokers will do," Schumer said after recounting a story of an ailing Queens man who refinanced his home on a broker's promise of a $1,400-a-month payment that changed to $4,000 a month after less than a year.

While the banking industry and its mortgages are regulated by the federal government, mortgage brokers go virtually unregulated, Schumer said, adding that it's such brokers who sell risky "subprime" mortgages to people with poor credit."

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