New Reform Legislation May Cost Mortgage Borrowers
November 26, 2007
Currently proposed legislation to reform the bankruptcy code and allow judges to impose debt on primary residential mortgages will create significant costs on consumers by restricting the flow of capital into the mortgage market thus increasing their cost, according to David Kittle, chairman-elect of Mortgage Bankers Association.
"If you chip away at the security created on home mortgages you chip away at the entire core of the mortgage finance system. In order to account for the added risk you will add costs to obtaining a mortgage. Rates would jump, going up to 2 points for everyone taking out a loan," Kittle predicted.
Posted in Things of Interest, Taxes, Local Business, Lending, Real Estate, All Things San Diego
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