The Bitter Battle Over Mortgage Rules

The lawmakers continue to fight over the new mortgage rules and surely both mortgage broker and homeowners will find loopholes in these new laws just as they have done in the past. Hopefully we can move into the future without ever experiencing anything similar to the 2008 housing bust again.

By JON PRIOR | 3/24/13 9:55 PM EDTLawmakers and the White House still have no plan for what to do with taxpayer-owned housing giants Fannie Mae and Freddie Mac, but big policy decisions about the mortgage market are still being made in Washington.

Banking regulators, as part of the 2010 Dodd-Frank financial reform law, are putting in place two rules that will have a big impact on who can get a mortgage and at what cost.

In January, the Consumer Financial Protection Bureau defined what lenders have to do to make sure a borrower can afford a loan, and in the coming months, the Federal Reserve and other regulators will define the rules on how mortgages can be sold off to investors.

Reverse Mortgages – Useful, But Be Aware of The Risks

A valuable bit of advice on reverse mortgages. Many seniors see this as a way to put more money in their pocket but don’t always take the time to weigh the risks. There are sources on the Internet including calculators that can determine just how much you would be draining your current home equity when using a reverse mortgage for expenses.  You always want to complete your “due diligence” and find out exactly what the interest rate will be along with just how much you can afford to slice into the equity within your home.

Holiday periods like Easter can be challenging for some retirees, who want to lavish treats on their grandkids even if it means scrimping on personal spending to get by financially. A reverse mortgage can provide welcome extra cash for seniors though it’s an option that should be carefully considered.