Senate Approves Financial Reform Bill

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As far as buying a home goes some changes that this bill will create are:

  • Limits how lenders can penalize borrowers for paying off their loan early (prepayment penalty).
  • No more stated loans…that’s where the lender trusts you to tell them the truth about your financials without proof in exchange for a higher interest rate.
  • Lenders and brokers won’t be allowed to push borrowers to accept loans with higher interest rates or with risky features…I’m curious how they are going to govern this, but whatever…

I think these are some good changes in theory, but I will be curious how they play out.  I know there has been a lot of negative publicity for stated loans, but they have been helpful to a lot of people, particularly self employed borrowers.   Read the article in NYT HERE

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