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New Fed Policy Makes It Harder to Stop Foreclosures
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You're Now Reading:
New Fed Policy Makes It Harder to Stop Foreclosures
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
New Fed Policy Makes It Harder to Stop Foreclosures
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December 6 2010 (Shirley Allen)
stop_foreclosure_square_banner
The Federal Reserve is considering changing policy that will make it much harder for homeowners to stop foreclosures and escape predatory home loans. The Fed’s proposal to amend a 42-year-old provision of the federal Truth in Lending Act would put an end to a homeowners right to cancel, or rescind, illegal loans for up to three years after the transaction was completed if the buyer wasn’t provided with proper disclosures at the time of closing.

The proposal has not only angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys, but they’re also asking the Fed to withdraw the proposal because they want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.

In a letter to the Fed’s Board of Governors, dozens of groups that oppose the measure, including the National Consumer Law Center, the NAACP and the Service Employees International Union stated, “At the depths of the worst foreclosure crisis since the Great Depression, we are surprised that the Fed has proposed rules that would eviscerate the primary protection homeowners currently have to escape abusive loans and avoid foreclosure: the extended right of rescission.”

The way the law is now, if problems are found with a homeowner’s loan, a notice of rescission is sent to the creditor, which can either admit to the alleged violation or contest it in court.

Creditors that end up rescinding a loan are then required to cancel their “security interest,” or lien, on the property. Once that occurs, the homeowner must then pay the outstanding loan balance back to the lender — minus the finance charges, fees and payments already made.

Dropping the lien provides homeowners with a defense against foreclosure and allows them to refinance to pay the outstanding loan amount.

Critics say the proposed change by the Fed would render the rescission clause useless. The Fed’s proposal would require homeowners who seek a loan rescission through the courts to pay off the entire loan balance before the lender cancels the lien.

Barry Zigas, director of housing and credit policy at the Consumer Federation of America argues, “This, of course, would be almost impossible for most consumers to do because they can’t come up with the money until they get out of the loan. And they can’t get out of the loan until the lien is released.”

The Fed “believes this adjustment would facilitate compliance with the Truth in Lending Act,” adding that the “majority of courts that have considered this issue” condition the release of a lien on a homeowner’s ability to repay the balance.
Critics of the new proposal claim rescission is an effective tool to make sure creditors follow the rules and are transparent about the true cost of loans.

Tags: federal reserve, rescission clause, foreclosure, predatory loans, truth in lending act, homeowners right to cancel, lien, loan rescission

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
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Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
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December 6 2010 (Shirley Allen)
stop_foreclosure_square_banner
The Federal Reserve is considering changing policy that will make it much harder for homeowners to stop foreclosures and escape predatory home loans. The Fed’s proposal to amend a 42-year-old provision of the federal Truth in Lending Act would put an end to a homeowners right to cancel, or rescind, illegal loans for up to three years after the transaction was completed if the buyer wasn’t provided with proper disclosures at the time of closing.

The proposal has not only angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys, but they’re also asking the Fed to withdraw the proposal because they want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.

In a letter to the Fed’s Board of Governors, dozens of groups that oppose the measure, including the National Consumer Law Center, the NAACP and the Service Employees International Union stated, “At the depths of the worst foreclosure crisis since the Great Depression, we are surprised that the Fed has proposed rules that would eviscerate the primary protection homeowners currently have to escape abusive loans and avoid foreclosure: the extended right of rescission.”

The way the law is now, if problems are found with a homeowner’s loan, a notice of rescission is sent to the creditor, which can either admit to the alleged violation or contest it in court.

Creditors that end up rescinding a loan are then required to cancel their “security interest,” or lien, on the property. Once that occurs, the homeowner must then pay the outstanding loan balance back to the lender — minus the finance charges, fees and payments already made.

Dropping the lien provides homeowners with a defense against foreclosure and allows them to refinance to pay the outstanding loan amount.

Critics say the proposed change by the Fed would render the rescission clause useless. The Fed’s proposal would require homeowners who seek a loan rescission through the courts to pay off the entire loan balance before the lender cancels the lien.

Barry Zigas, director of housing and credit policy at the Consumer Federation of America argues, “This, of course, would be almost impossible for most consumers to do because they can’t come up with the money until they get out of the loan. And they can’t get out of the loan until the lien is released.”

The Fed “believes this adjustment would facilitate compliance with the Truth in Lending Act,” adding that the “majority of courts that have considered this issue” condition the release of a lien on a homeowner’s ability to repay the balance.
Critics of the new proposal claim rescission is an effective tool to make sure creditors follow the rules and are transparent about the true cost of loans.

Tags: federal reserve, rescission clause, foreclosure, predatory loans, truth in lending act, homeowners right to cancel, lien, loan rescission

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

December 6 2010 (Shirley Allen)
stop_foreclosure_square_banner
The Federal Reserve is considering changing policy that will make it much harder for homeowners to stop foreclosures and escape predatory home loans. The Fed’s proposal to amend a 42-year-old provision of the federal Truth in Lending Act would put an end to a homeowners right to cancel, or rescind, illegal loans for up to three years after the transaction was completed if the buyer wasn’t provided with proper disclosures at the time of closing.

The proposal has not only angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys, but they’re also asking the Fed to withdraw the proposal because they want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.

In a letter to the Fed’s Board of Governors, dozens of groups that oppose the measure, including the National Consumer Law Center, the NAACP and the Service Employees International Union stated, “At the depths of the worst foreclosure crisis since the Great Depression, we are surprised that the Fed has proposed rules that would eviscerate the primary protection homeowners currently have to escape abusive loans and avoid foreclosure: the extended right of rescission.”

The way the law is now, if problems are found with a homeowner’s loan, a notice of rescission is sent to the creditor, which can either admit to the alleged violation or contest it in court.

Creditors that end up rescinding a loan are then required to cancel their “security interest,” or lien, on the property. Once that occurs, the homeowner must then pay the outstanding loan balance back to the lender — minus the finance charges, fees and payments already made.

Dropping the lien provides homeowners with a defense against foreclosure and allows them to refinance to pay the outstanding loan amount.

Critics say the proposed change by the Fed would render the rescission clause useless. The Fed’s proposal would require homeowners who seek a loan rescission through the courts to pay off the entire loan balance before the lender cancels the lien.

Barry Zigas, director of housing and credit policy at the Consumer Federation of America argues, “This, of course, would be almost impossible for most consumers to do because they can’t come up with the money until they get out of the loan. And they can’t get out of the loan until the lien is released.”

The Fed “believes this adjustment would facilitate compliance with the Truth in Lending Act,” adding that the “majority of courts that have considered this issue” condition the release of a lien on a homeowner’s ability to repay the balance.
Critics of the new proposal claim rescission is an effective tool to make sure creditors follow the rules and are transparent about the true cost of loans.

Tags: federal reserve, rescission clause, foreclosure, predatory loans, truth in lending act, homeowners right to cancel, lien, loan rescission

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.