Proposed Rules To Protect Borrowers

This should be interesting.  Here is what they are proposing for mortgages:

  • A one-page Q&A document explaining risky features of a loan
  • Streamlined early cost disclosures
  • A revised annual interest rate that includes most fees and costs
  • A graph showing borrowers how their rate compares with rates of borrowers with excellent credit
  • In addition, side payments for steering borrowers to higher-cost or riskier loans would be banned.
  • Home-equity loan applicants would get:
  • A one-page document explaining the risks of the loan
  • Cost disclosures specific to their loan
  • In addition, lenders would have to notify borrowers 45 days before changing terms of

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