Tuesday, July 10, 2012

New Rules for Mortgages

The Consumer Financial Protection Bureau on Monday issued new rules for residential mortgages according to an article in today's New York Times.  The two most significant parts of the new rules are (1)"within three days of applying for a loan, consumers would receive a loan estimate that outlined the terms, including how much interest they would pay, how that might shift over the life of the loan and the highest loan amount that consumers could face." and (2) "the rules would make lenders provide more information about potential closing costs at least three days before closing. The five-page closing-cost form would allow borrowers to avoid any surprise payments at the signing table."

A full explanation of the new rules is available on the CFPB website.

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