Finance reform bill will affect mortgages

Miami /
Jun.June 25, 2010 12:45 PM

Congress reached an agreement today on the terms of the long-debated
finance reform bill, which could have wide-ranging implications for the mortgage industry, if the bill is approved by a vote, according to the New York Times. Analysts expect the congressional vote to take place in the coming days. Under the
terms of the bill, mortgage lenders would be required to look more closely at borrowers’ qualifications, making mandatory checks on their
income and assets before granting a loan. Other rules include a ban on payment penalties for
people with adjustable rate mortgages. Mortgage brokers and bank
employees will no longer be able to earn bonuses based on the type of
loan they issue, in the hopes that this will eliminate any incentive
to push high-interest loans on borrowers to inflate bank profits.
According to Julia Gordon, senior policy counsel for the Center for
Responsible Lending, there will also be a cap limiting mortgage
origination fees to 3 percent of the loan, with exceptions for
required upfront mortgage insurance premiums. [NYT]

 

Related Articles

arrow_forward_ios
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
Dan Gilbert and 100 El Bravo Way (Credit: Getty Images and Realtor)
Company tied to Quicken Loans buys Palm Beach estate for $25M
Company tied to Quicken Loans buys Palm Beach estate for $25M
(Illustration by Andrew Colin Beck)
Who will be the winners and losers of the next recession?
Who will be the winners and losers of the next recession?
Bal Harbour Shops, Matthew Whitman Lazenby, Erica English, Howard Friedberg and Michael Katz
Whitman scores $550M loan for Bal Harbour Shops
Whitman scores $550M loan for Bal Harbour Shops
Hurricane damage in Florida (Credit: iStock)
“No one should be lending for 30 years in most of Florida,” financial climate analyst warns
“No one should be lending for 30 years in most of Florida,” financial climate analyst warns
Fast money: Lenders race to close on home mortgages
Fast money: Lenders race to close on home mortgages
Fast money: Lenders race to close on home mortgages
(Credit: Pixabay)
Mortgage interest rates dropped last week and may stay down for months
Mortgage interest rates dropped last week and may stay down for months
(Credit: iStock)
Brexit bonus? More first-time buyers enter the UK housing market
Brexit bonus? More first-time buyers enter the UK housing market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...