We are still only a few weeks into 2013 and the Federal Government is moving forward with its promises to improve the mortgage industry and top officials in the government recently announced plans to limit predatory lending practices plus help borrowers to know the precise details of their mortgage loans.
A Long Time Coming
Thanks to changes in Federal regulations by the United States Consumer Financial Protection Bureau, we know that lenders will no longer be able to engage in the same predatory lending practices which led to millions of homeowners getting trapped into Adjustable Rate Mortgages and loans they were not able to pay.
The result of wide spread predatory lending was one factor that led to the housing crisis and what many economists call the “Great Recession”.
How Will The New Regulations Work?
Orange County Realtors and mortgage industry professionals across the country are hopeful that the new lending “criteria” that the Consumer Financial Protection Bureau recently enacted will help lenders in Orange County and across the country easily know when they have a qualified application.
More Protection for Lenders?
According to David Stevens, Mortgage Bankers Association CEO, top lenders like Wells Fargo and Bank of America will not be protected if they stride outside of the new Consumer Financial Protection Bureau, to be seen as a qualified applicant for a mortgage. The average borrower must meet the following criteria:
- They must have enough assets and income to repay their mortgage loan.
- Every borrower must have documentation of employment.
- A borrower’s credit score must meet the standards of the lender.
To learn more about the 2013 mortgage industry rules and how this will affect you or to view the latest Orange County homes for sale, contact the experienced team of Top Realtors at Fred Sed & Associates today by calling (949) 272-0125.