In the banking industry some new rules are scheduled to take effect. The interest of the homeowner will now be protected when he signs the paperwork to purchase a house. In addition to federal laws, mortgage lending York PA firms will have new rules implemented. These are going to be added to the existing laws and regulations.
A 2005 Pennsylvania report was released by the banking department. It contained information about residential homes that were foreclosed on. There were also abusive lending practices being used in the state.
The Consumer Credit Protection Act dictates that certain disclosures must be given. Finance charges, annual percentage rate and the amount being financed must be disclosed by the banks and other lending institutions. Other facts that must be clarified are the total amount of all payments and total sales price. The consumer needs to be aware of having three business days to change his mind and back out of the loan.
Lenders are required to be licensed by the state before they are authorized to offer home loans. They need to take classes and become certified and a check into their background is conducted. Rules dictate that when a foreclosure is necessary, the homeowner must be given sufficient advance notice before the date of foreclosure.
Following the real estate recession many homeowners were left with homes valued at less than the money owed to the bank. This included many who had paid off most of the money owed. This devastated the lives of many solid citizens who had worked hard to become homeowners.
The mortgage lending York PA regulations will never be quite the same as before the recession. The details of each loan must be fully clarified prior to paperwork being signed. This is the most costly purchase most folks will ever make. It is imperative that they understand what their responsibilities are and what the ramifications will be if payments on not made on time.
A 2005 Pennsylvania report was released by the banking department. It contained information about residential homes that were foreclosed on. There were also abusive lending practices being used in the state.
The Consumer Credit Protection Act dictates that certain disclosures must be given. Finance charges, annual percentage rate and the amount being financed must be disclosed by the banks and other lending institutions. Other facts that must be clarified are the total amount of all payments and total sales price. The consumer needs to be aware of having three business days to change his mind and back out of the loan.
Lenders are required to be licensed by the state before they are authorized to offer home loans. They need to take classes and become certified and a check into their background is conducted. Rules dictate that when a foreclosure is necessary, the homeowner must be given sufficient advance notice before the date of foreclosure.
Following the real estate recession many homeowners were left with homes valued at less than the money owed to the bank. This included many who had paid off most of the money owed. This devastated the lives of many solid citizens who had worked hard to become homeowners.
The mortgage lending York PA regulations will never be quite the same as before the recession. The details of each loan must be fully clarified prior to paperwork being signed. This is the most costly purchase most folks will ever make. It is imperative that they understand what their responsibilities are and what the ramifications will be if payments on not made on time.
About the Author:
Find a review of the advantages you get when you use the services of a mortgage lending York PA company and more information about a reputable mortgage firm at http://www.myhomelender.net now.
No comments:
Post a Comment