Regulators to Craft New Mortgage Lending Standards by January
As most people in the mortgage lending industry well know, the Dodd-Frank and the Consumer Protection Act have made it even more difficult for consumers to obtain loans by trying to “protect” them. By placing new and expensive regulatory requirements on mortgage lenders, many mortgage companies have closed up shop.
The new Act has also placed new restrictions on non-bank lending that did not exist before the financial crisis. In order to protect themselves, the majority of hard money and private money lenders won’t even lend to consumers anymore, but only to business entities on investment properties. For example, a homeowner who needs to refinance and can’t qualify at the bank, is now unable to obtain a loan from a hard money lender.
These new regulations have already made it nearly impossible for a consumer, who is about to lose his or her home, to save the home by obtaining a non-bank, private or hard money loan. For example, a homeowner recently came to us for a loan on his primary residence. He had never missed one payment on the loan when the bank suddenly went under and was taken over by the FDIC. Read the rest of the story by clicking here: http://www.thenichereport.com/category/blog/