Feds Proposed Regulation Could Harm Consumers and Increase Costs Says MBA

At the end of August, the Federal Reserve published proposed amendments to Regulation Z of the Truth in Lending Act (TILA).

The proposed changes would revise the disclosure rules and prohibit certain payments to mortgage brokers and loan officers based on the terms and conditions of the loan.

In addition, it would prohibit steering consumers into transactions that are not in their best interest in order to increase compensation to the loan officer. While reverse mortgages are not specifically included in the proposal, it acknowledges that the Board anticipates reviewing the rules surrounding a reverse mortgage at a later date.

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The Mortgage Banker’s Association issued two extensive statements expressing concern that the proposed changes could harm consumers and increase costs unnecessarily.

The National Reverse Mortgage Lenders Association notified members that it would be submitting comments to the Federal Reserve Board in response to some very important proposed regulatory changes.

Write to Reva Minkoff

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  • HUD's new good faith estimate is joke ,no down payment , no seller help section ,no place to sign and the form can not be altered. It is time we all ban together and fight the change.The new GFE very confusing to the public . A title person designed it not a banker ,or a Realtor. Lets hear more on this issue and we should all fight back . I have been a good loan officer for 20 years and this may be the last straw . Let some newbies get in the business and screw things up then we will see how well the housing recovery comes about . Thanks HUD you took a very detailed estimate and made it usless , gret job Obama team . Thank you

  • Sooooo, where was Peter (…) (……) Bell's vaunted NRMLA in all of this?
    unhappyloanguy and REVGUY, You boys need to pony up your $1,000 CRMS RIP-OFF FEE to get them back to work, I guess.

  • It is time to tell Obama Team stop ruining the Reverse Mortgage.This loan was developed by long time Democrat Claude Pepper with bipartisan help from President Ronald Reagan. Then it passed Congress and made permanent by President Clinton in his second term. Some 400,000 of these motrgages have been made successfully before Obama Team started tweaking and bureaucratically ruining this product for seniors. Under Obama FHA has made onerous changes for no apparent benefit to the best interests of seniors. Appraisers and Counselors are just that appraisers and counselors they should do their jobs period. The forward loans don’t need counselors and appraisers are required to be professional. Overanxiety has treated seniors as stupid people. Seniors are wiser than forty somethings and capable of making good decisions. It is our money our equity but stop the do gooders and we will be just fine. Don’t make changes to enhance the notches on your bureaucratic belts. Enough already!!!

  • I'm also very surprised by the poor design of the new GFE. It's very confusing for consumers and provides less useful information than the old one. Definitely a big step back with regard to clear disclosure.

  • Hello 2545, What's interesting about this quote is that so many have been
    given credit for this statement: Alex de Tocqueville, Thomas Jeffferson, Shakespeare in Julius Caesar, and even the Gonzo Author Hunter S. Thompson. Take your pick; I wouldn't be surprised to learn there are others as well.

  • LETS see some articles about the new poorly designed GFE I am surprized a writer has not jumped on this . Maybe someone should get the balls to be the first . Afraid of big brother ?

  • LETS see some articles about the new poorly designed GFE I am surprized a writer has not jumped on this . Maybe someone should get the balls to be the first . Afraid of big brother ?

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