Stronger Mortgage Regulations Proposed
November 20, 2007
New legislation has been proposed that would restrict lending practices, encourage states to enact stronger mortgage regulations and set up federal-level regulations if they don’t do so. The bill, proposed by Rep. Barney Frank, chairman of the House Financial Services Committee, is designed to protect future borrowers.
The new law would bar mortgage lenders and brokers from receiving incentive payments to sign up borrowers for overly expensive loan. It would force lenders to give borrowers a range of suitable loan options and make sure the consumer has a reasonable ability to repay the loan. It would also enact strict limits, but not an outright ban, on penalty charges made to borrowers who make their payments early.
Posted in Helpful Hints, Taxes, Things of Interest, Local Business, Real Estate, Lending, All Things San Diego
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