This blog is focused primarily on the liabilities of U.S. citizenship. U.S. citizenship is a liability because of the enormous number of unfair regulations imposed on U.S. citizens abroad. The U.S. government has burdened U.S. citizens abroad with such a regulatory stranglehold that few can afford to maintain U.S. citizenship. Renunciations of U.S. citizenship are soaring and widely seen as necessary as a form of protection from the U.S. government – a government that seems to be “hell bent” on destroying its citizens abroad. The U.S. government seems incapable of making the connection between its trade deficit and having U.S. citizens “on the ground” in other countries selling U.S. products. But who cares about U.S. citizens abroad? As a good American, I certainly don’t. How could anybody have the temerity to leave the homeland? After all, the best place for Americans is in America. (Only kidding)
That said, it is also clear that the government is imposing excessive burdens on Homelanders. The U.S. economy is in the dumps. This was largely caused by bad mortgages. By “bad mortgages” I mean mortgages that were the offered by banks who had reason to believe that the borrowers could not pay the money back. But, why would the banks care? After all many of the mortgages were guaranteed by the U.S. government.
Here is an interesting video that explains how mortgages led to the 2008 Global financial crisis.
In any event, the government responded with a host of new regulations. But to whom should those regulations apply?
I just came across the following information (and I will leave it to you to ensure its accuracy). Nevertheless, this is interesting:
October 8, 2013
Seller financing is under attack again and your comments are needed immediately.
We have an Oct. 16th deadline to act.
In July 2011 the Federal Reserve asked for comments on Dodd-Frank amending the Truth-in-Lending Act (TILA). At that time we were all concerned they were going to require property owners who offered seller financing to prove the buyer’s ability to repay.
Everyone rallied, sent comments and the Federal Reserve responded favorably.
It worked with the Federal Reserve, but regulatory authority over the TILA has been moved to the new Consumer Financial
Protection Bureau (CFPB), and it is proposing restrictions on seller financing that few property owners will like.
We all need to write comments to the CFPB by Oct. 16 explaining why this proposed rule would basically destroy seller financing which in turn takes away the opportunity for a segment of the American population to purchase a home.
CFPB is proposing a rule that not only limits seller financing transactions on dwellings to three per year, but the property
seller must also comply with the following restrictions:
- The seller has to verify and document the buyer’s ability to repay the installment sale using the same criteria mortgage loan originators (MLOs) and banks are required to use. This is the same criteria that are required under the controversial Qualified Mortgage definition. If the seller does not qualify the buyer the fines are the same as they are for MLOS and banks.
- The buyer and seller are not allowed to negotiate a balloon payment. The installment sale cannot negatively amortize, nor can you have an interest-only installment sale.
- Furthermore, the installment sale has to have a fixed interest rate for the first five years before the interest rate can
I have provided links to the proposed TILA rule and a link where you can send your comments.
You can read Ric Thom’s comments to the CFPB athttp://papersourceonline.com/blog-articles/ (scroll down).
Comments must be received no later than October 16, 2012. Please forward this e-mail to others who believe in the right to private property.
Visit www.regulations.gov to submit your comments.
The Truth in Lending Act (Regulation Z); Loan Originator Compensation 36(a)-1.v (seller financing) can be found at:
PLEASE SEND YOUR COMMENTS TO WWW.REGULATIONS.GOV TODAY!
This is incredible. Assuming the truth of this, the U.S. government, at at time when a housing recovery would help the U.S. economy, the government by applying rules designed for big banks to private sellers of houses is making it harder for people to purchase a home. Note the usual focus on finds and penalties. Why is this stupid? A private seller of a house does not need to be told that he must ensure that the buyer is credit worthy.
The U.S. behaves in strange and destructive ways:
- in order to combat terrorism you apply FBAR rules the U.S. citizens abroad;
- in order to protect home buyers from unscrupulous lenders you apply rules intended for banks to vendor take back mortgages.
How should the U.S. deal with the problem of bad mortgage loans? Answer: the government should not be insuring the mortgages.
This is incredible – simply incredible.
If you agree that this is a problem, the retweet the following:
Housing market helping to lift U.S. economy: Fed survey soc.li/69uqylZ – Why burden VTB mortgages? renounceuscitizenship.wordpress.com/2012/10/10/exc…—
U.S. Citizen Abroad (@USCitizenAbroad) October 11, 2012