The Consumer Financial Protection Bureau (CFPB) announced its new mortgage rules last week that would protect borrowers from risky mortgages. Some consumer groups are criticizing the rules with the argument that these rules only protect the banks. One of the CFPB’s new rules is that lenders cannot issue mortgages to those who do not have the “ability-to-repay.” This rule states that borrowers must be able to prove they can afford the loans. The new rules will also end the outbreak of multi-million dollar lawsuits against lenders for wrongful foreclosure practices.
Consumer groups argue that the rules provide a legal shield for banks that is detrimental to borrowers. The CFPB has also installed a “qualified mortgage” standard, meaning that when a loan meets the lending criteria, it will become a “qualified mortgage.” This standard protects banks from lawsuits filed by borrowers or buyers of mortgage-backed bonds. According to consumer groups, this standard will make it possible for lenders to issue unaffordable loans that still meet the “ability-to-repay” criteria. Lower-income borrowers will be at risk of losing their home and destroying their credit, but unable to take legal action.
To read more on this story visit: http://money.cnn.com/2013/01/10/real_estate/mortgage-rules/index.html
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.