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New Reforms for the Residential Mortgage Industry

Posted by: John S. Osga - 12/17/2007 10:41:58 AM

It looks like the federal government is finally starting to act on it's plans to revamp the troubled mortgage industry. Amongst the proposed changes: <ul> <li>ban all prepayment penalties imposed by lenders in connection with subprime and nontraditional loans <li>taxes and insurance would be required in an escrow account for all subprime borrowers <li>viloator brokers of these conditions would be hit with fines and mandatory cancellation of the loans <li>appraisers who inflate property values could be sued by the bank or loan officer is the property is appraised more than 10% off the standard market value - as determined by an independent valuator <li>no documentation loans would no longer be available <li>Reforming of the Federal Housing Administration's loan programs </ul> Looking for a home in the Chicago area? Interested in what prices are in your Chicago neigborhood? Try our <a href=/re/dream_seekers>Chicago real estate search engine</a>

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