Excerpt from: Ski Resort Newsroom
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| June 17, 2009 | | Barack Obama proposes regulatory reform | Today the news is all about the financial sector -- especially the mortgage market. Senators are trying to push a new $15,000 tax credit for home buyers, and President Barack Obama just announced a proposal for regulatory reform. The mortgage industry could be affected by his proposals.
Indeed, the proposals could require mortgage lenders to be more straightforward with borrowers, and see to their interests. The Wall Street Journal reports on the possibilities under regulatory reform:
Mortgage brokers also could be charged with new duties, such as
presenting homeowners with the best available mortgage loans and
ensuring consumers can afford the mortgages. And the new agency could
ban certain practices like prepayment fees or "yield spread premiums,"
blamed for incentivizing brokers to steer borrowers to costly loans.
Any new requirements would be applied uniformly to all lenders in
the industry, including banks, nonbanks and mortgage brokers. And the
states would have the power to offer tougher rules than the federal
agency.
So far, though, consumer protection measures are already meeting stiff opposition from the banking and mortgage industry.
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