Restoring American Financial Stability Act of 2010
When this new law is fully implemented, it appears that Mortgage Brokers will be limited in what loans they can originate and one wonders if mortgage brokers will even survive this change.
- One of the provisions of the law requires the lender to retain a percentage of ownership, which clearly will not be possible with brokers, but might work with wholesale lenders, where brokers send their loans.
- Another provision sets the compensation to a fixed amount, potentially being so low, it’s not worth doing the job.
- The new disclosure requirements are very cumbersome and most borrowers find them to be confusing.
An overview of this law is as follows: Read the rest of this entry »
