Friday, July 06, 2012

Overhaul of Home Mortgage Market underway

The New York Times reports today that the newly created Consumer Financial Protection Bureau is in the process of over overhauling the way the home mortgage business operates with a host of consumer-friendly regulations that will make borrowers better aware of the liabilities and obligations that come with their proposed loans.  The story reports that organizations representing lenders are generally in favor of most of the reforms which is a good thing. 

While it's natural to think that stricter regulations might tend to suppress the market, the fact is that the great majority of home owners have little idea of some of the basics of real estate and mortgage law.  The more that lenders are required to explain things clearly, the less likely that borrowers will get into difficulties that lead to things like foreclosures and other distressed sales.

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