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This is a copy of an email I sent out in regards to Texas and who we are losing out in regards to the New Housing Bill and it's provisions for the mortgage bailout.

My name is Samuel Morales and I’ve been in the mortgage industry for over 5 years so I know what I’m talking about when I say this, “Texans are being looked over and not being accounted for in the New Housing Bill that was just passed” and this infuriates me.

Here’s why:

A vast number of Texans that need help have taken previous home equity loans out on their homesteads. In Texas we call these loans Texas A-6 loans; Back when states were passing home equity laws Texas took an extremely conservative and secure stance in regards to home equity laws there by limiting an individual to only borrowing 80% of the market value of their homestead. In addition to this, once someone takes out a Texas-A6 loan they are forever limited to that 80% ratio even if they refinance at a later time without taking cash out. So now we have the rule “Once an A-6 always an A-6”. Keep in mind that in Texas and Texas only an A-6 loan can not be refinanced as an FHA loan and Texans can not do a cash-out FHA loans like in virtually every other state. (Why is this? No reason, just because; it makes no sense)

Well, you know the new FHA (HUD) $300 Billion bail out meant to help people in need. It’s almost useless in Texas.

Back in the late 90’s and early 00’s many lenders such as Ameriquest and others were doing A-6 loans and inflating appraisals to increase their commissions by allowing borrows to borrow more. The vast majority of these borrows took out Fixed Rate ARMs (That’s when a mortgage is fixed for 1-5 years before it starts to adjust) thinking they could refinance just before the mortgage rate started to increase.

Remember now that A-6 loans are limited to 80% LTV and the initial appraisal was inflated. That means that the borrow is now stuck forever because when they go to refinance they are over 80% of the market value of their homestead, so no matter what their credit looks like they are screwed (excuse my language). (This is because the loan is now considered a Texas A-6 loan, FOREVER )

2 key points (If these 2 key points are met the new law will stand to actually make a difference in this state)

• There is absolutely no valid reason for Texans not to be able to refinance their previous Texas A-6 loan as an FHA loan
• Texas government needs to scrap the 80% rule when someone is applying for HUD assistance via the New Housing Bill.

Why hasn’t anyone caught this? Who knows, but lawmakers

In my opinion the bill is a dead fish anyway but at least some people will be saved. But until these changes are put in Texans are being isolated as the only state that will be virtually excluded from assistance with few exceptions.

I run a website, www.newhousingbill.org and I am already in the process of helping people in need that reside in other states. I’m proud to be a Texan and I have faced foreclosure myself, maybe that’s why I’m so upset about this. I am ashamed that our law makers have overlooked this issue and isolated other Texans that would, if they lived in another state, qualify for this assistance.

I’m sending this to everyone I know because it pisses me off. If you’re going to pass a bill it should do what it’s intended to do. Don’t get me wrong, this is not an issue with our federal government. It’s our local state government that has rendered this law useless for Texans.

Senator John Cornyn Ashamed to say he did not have an email listed online that I could find, and he suppose to be my rep.