In the banking industry some new rules are scheduled to take effect. The interest of the homeowner will now be protected when he signs the paperwork to purchase a house. In addition to federal laws, mortgage lending York PA firms will have new rules implemented. These are going to be added to the existing laws and regulations.
A 2005 Pennsylvania report was released by the banking department. It contained information about residential homes that were foreclosed on. There were also abusive lending practices being used in the state.
Now a Consumer Protection Act requires reporting of certain details. Some examples are finance charges, the full sale price and the full amount being financed. These facts must be made clear to the borrower. If foreclosure should become necessary in any case, the homeowner will be made aware of it well in advance of being served with papers.
To be allowed to offer home loans in Pennsylvania, the bank must hold a state license. Employees of the lending institution will be required to have training and be certified. A background check is done for each banker to reveal any disreputable activity in his or her past. Foreclosure must be done only after the homeowner is given sufficient notification.
A great many unfortunate homeowners were forced into foreclosure when the real estate recession left their homes worth less than the balance of the money owed to the bank. These were responsible people who had paid their loans regularly over a number of years. Many faced foreclosure.
Although the effects of the crisis have abated and the real estate industry is recovering, some homeowners have not. There is a certain percentage who will never recover. The home is the single most expensive purchase most people will make in their lifetime. Mortgage lending York PA regulations will be better understood by the borrower in the future as details will be disclosed prior to signing the loan papers.
A 2005 Pennsylvania report was released by the banking department. It contained information about residential homes that were foreclosed on. There were also abusive lending practices being used in the state.
Now a Consumer Protection Act requires reporting of certain details. Some examples are finance charges, the full sale price and the full amount being financed. These facts must be made clear to the borrower. If foreclosure should become necessary in any case, the homeowner will be made aware of it well in advance of being served with papers.
To be allowed to offer home loans in Pennsylvania, the bank must hold a state license. Employees of the lending institution will be required to have training and be certified. A background check is done for each banker to reveal any disreputable activity in his or her past. Foreclosure must be done only after the homeowner is given sufficient notification.
A great many unfortunate homeowners were forced into foreclosure when the real estate recession left their homes worth less than the balance of the money owed to the bank. These were responsible people who had paid their loans regularly over a number of years. Many faced foreclosure.
Although the effects of the crisis have abated and the real estate industry is recovering, some homeowners have not. There is a certain percentage who will never recover. The home is the single most expensive purchase most people will make in their lifetime. Mortgage lending York PA regulations will be better understood by the borrower in the future as details will be disclosed prior to signing the loan papers.
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Find a review of the advantages you get when you use the services of a mortgage lending York PA company and more information about a reputable mortgage firm at http://www.myhomelender.net now.
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