On January 10, new federal regulations went into effect. Across the United States, Florida, and your home town, these regulations are designed to prevent new home buyers from ending up underwater or in foreclosure.
Experts hope the new rules will help society avoid another crushing foreclosure crisis.
If you are fascinated with financial news and legal details, you will enjoy the in depth article at Money CNN, which informs you about the new details in Truth In Lending, Regulation Z.
“The new rules are designed to take a “back to basics” approach to mortgage lending and lower the risk of defaults and foreclosures among borrowers, according to the Consumer Financial Protection Bureau, which issued the new rules.”
CFPB director Richard Cordray in remarks prepared for a hearing Friday stated, “No debt traps. No surprises. No run arounds. These are bedrock concepts backed by our new common-sense rules, which take effect today,”
Likewise, we recently blogged about this information and the coming changes in loan regulation. We invite you to click and review the details!
On WFTV recently, news reporter Marisa Mendelson highlighted the new rules, based on facts from the Association of Realtors’ office in Orlando.
Don’t Let History Repeat Itself
Usually it is a good thing to be recognized in the top ten, but unfortunately, during 2013, Orlando remained in the top 10 in United States foreclosures.
Realty-Trac research also placed us on the top of the sad list of cities “with too many homes with underwater mortgages.”
New Regulations Give Home Buyers Hope.
1. Realtor Iona Harrison stated, “The mortgage they’re going to receive to purchase a property is something that their financial circumstance will allow them to repay without a struggle,” said Florida realtor Iona Harrison.
2. To put it simply, the new rules force lenders to be certain that borrowers can realistically repay a loan.
3. In addition lenders must prove borrowers can make it through tough times when the economy fluctuates, because a mortgage is a long-term debt. That attractive, low, introductory rate might not last, and a family budget could be traumatized when the introductory low rate disappears.
Harrison added, “We want them to be comfortable with the terms of that loan. We want them to feel as confident as possible that this is the very best decision they can be making for themselves and their families.”
Be Prepared: Your new loan might take a little more paper work than you are expecting. It also might require a little more loan approval time. These should be small prices to pay when compared to the burdensome cost of a loan payment that is too high or becomes impossible.
We know that the Florida housing industry is improving. In November, the number of properties that received a foreclosure filing in U.S. was 15% lower than the previous month and 37% lower than the same time last year.
If Florida were a movie star, this would be hailed as a “come back!”
We thank you for visiting our website, and we personally invite you to look over all our different pages for authoritative information and news you can use about Florida mortgages, home buying hints, and financial facts. We would love it if our blog became your reading habit in 2014.
