Fairness and Clarity in Mortgage Law is Good News for Grand Rapids Realtors
There has been some good news lately for Grand Rapids Real Estate Agents as well as for the homes for sale Grand Rapids. A new agency plans to makeover the mortgage market. The Consumer Financial Protection Bureau plans to improve the home mortgage market as a first step toward improving its fairness and clarity. The goal is to make the process of getting a mortgage easier for borrowers by helping them to understand the kind of loan they are getting and its cost. Richard Cordray, director of the bureau, said he wanted to show that the bureau could help consumers without drowning banks in red tape. “We have an overarching goal here,” Mr. Cordray said in an interview in his office near the White House, “which is to restore trust in the consumer financial marketplace. I don’t think we are just a regulatory body or just an enforcement body.” The mortgage market is first on the agenda because “it’s the market where consumers have the most at risk and they have the most at stake,” Mr. Cordray said. “I expect that the mortgage market in the fairly near term will look different in the sense that, first of all, it will be a clearer and more straightforward place for consumers, and second, it will be a more reliable market.”
The consumer bureau has proposed rules that will address the biggest stumbling blocks buyers face. When shopping for a loan, consumers will get a more complete and understandable “good faith estimate” of the costs. Grand Rapids Real Estate Agents in Michigan will have an easier time explaining the loans to their buyers and hopefully the homes for sale in Grand Rapids will become part of a clearer process.
Before closing a sale, consumers will receive a single, revamped disclosure form of the terms – the interest rate that they will pay, how it could change over the course of the loan and how much cash are needed at closing. And mortgage servicers, the companies that collect the payments, will be required to provide clearer information, better service and options for a borrower facing foreclosure. “If we do all of those things, from beginning to end, I think the mortgage process will work better,” Mr. Cordray said. “And that’s good for the economy. We’re in the fifth year now of economic slowdown – first of all, a crisis, and now a slowdown – because of what happened in the mortgage market. So it shows the real cost of having a system that did not work.”
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