Should Fed Dictate Your Mortgage Options?
Whose responsibility is it to decide whether a particular loan product is suitable for you? Is the final decision yours or should the banker/mortgage lender tell you if that product is unsuitable for you? These are the questions that federal regulators are currently asking.
According to a recent Bankrate.com article, regulators have proposed a “guidance” asking lenders to step cautiously when underwriting nontraditional loans. A guidance is a recommendation — not as binding as a regulation, but stronger than a mere suggestion. In short, they don’t want mortgage companies giving out loans to people who can’t afford to pay principal and interest, even if it’s an interest-only loan.
So, who assumes the burden here? Should the lender be held responsible for informing the customer when a particular loan product isn’t right for them, or should the consumer step up to the plate and take final responsibility on learning how particular loans work?
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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