15-Jan-14
New rules to prevent irresponsible during house foreclosures led to the collapse of mortgage lending practices could slow this process has become more cautious audit of potential borrowers for consumer loans.
The new rules , and written on the impact of Friday's Consumer Financial Protection Bureau will hold mortgage lenders legally responsible for ensuring that the consumer can repay the loan , and create a new class with a qualified mortgage borrowers better protection. About 101 homeowners in the mortgage still owe more than their home's value , said CFPB Director Richard Cordray in a speech on Friday . "Throughout the United States , two million households still remain in the foreclosure of the high-risk groups ," Cordray said. "In order to solve this broken system , the central principle of our mortgage service rules no surprises and no runarounds. Simply put , consumers should be those responsible for collecting their payments hit a surprise ."
Qualified mortgage can not contain risky features, including interest only payment terms or more than 30 years. For a pre- qualified mortgage costs are not more than 3% of the total loan balance , which will ensure that more first-time buyers can qualify for a loan .
In his speech, Cordray also refute the view that the new rules will " bog people down in red tape ."
"They reach than spend time working directly with clients to solve their personal situation a little more, " the new rules Cordray said .
As a result of the new rules , some of the mortgage terms will be prohibited , and raise the down payment ratio will likely be more common , said David Blitzer , managing in the S & P Dow . "The purpose of the new mortgage rules is to eliminate some of the most egregious mortgage seen before the financial crisis , " Blitzer said. " Although the cost of mortgage loans may rise due to paperwork and eliminate some of the mortgage terms , both lenders and borrowers will benefit from lower expected default experience ."
The implementation of new rules to avoid new, more stringent laws to punish bad loans will lead to approval of mortgage lenders will be more cautious in 2014 , said mortgage policy Bob Weiss , executive vice president at the American Bankers Association, who analyzed .
" Borrowers must also be prepared to disclose more information on mortgages , " Davis said. "Be patient . 's Credit will be ready to get their loans ."
Lenders fewer resources than large enterprises may be at a disadvantage , and their implementation of the new CFPB rules , Davis said.
"Having said that small lenders usually have to learn more about the advantages of society more than the loan, " Davis said. "We must see how to develop the market ."
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