1 post tagged “center for responsible lending”
Until legislation passes to protect American mortgage consumers from the predatory mortgages that have led to a record number of approximately two million home losses currently sweeping the nation, the Center for Responsible lending has stepped up to champion those who are struggling to adjust and potentially save their mortgage loan with extensive media outreach and the production an excellent brochure outlining the perils and pitfalls of shopping the current market.
In an effort to band aid the acute crisis in the mortgage default industry, many loan companies have been forced to create opportunities for borrowers to adjust their skyrocketing mortgage loans. It may be too late for millions of unfortunate homeowners, but it is not too late to set a standard for the future of American home loans.
Legislation by Rep. Barney Frank, D-Mass would create a new law to prevent mortgage buyers from being lured by teaser rates into taking loans that are out of their price range.
If successful, this new law would prohibit the financing of points and fees and ban prepayment penalties on subprime mortgage loans - a chronic scenario which forces naive buyers into a corner with no way out.
Most importantly, the bill calls for lenders to fully document the fact that borrowers can reasonably afford to pay back any loan. Since the slowing down of the real estate market, this is where many homeowners who have defaulted in Sonoma County and surrounding areas, of late, have met with their foreclosure misfortune.
First time home buyers are now in a far better position to shop for a great loan and there are plentiful resources for a mortgage buyer to beware.
Looking for the Best Mortgage is a brochure on how to shop, compare and negotiate on the best deal on a home loan. This brochure is a joint effort of 11 federal agencies and can be downloaded at:
www.federalreserve.gov/pubs/mortgage/mortb_1.htm
The Center for Responsible Lending's excellent Specialty Mortgage Brochure can be similarly downloaded at:
http://www.responsiblelending.org/pdfs/SpecialtyMortgageBrochure0805.pdf
