New consumer protection rules went into effect in January to help protect homebuyers and homeowners from predatory lending, taking on more debt than they can afford, not getting complete info from their mortgage holder and more.
The Consumer Financial Protection Bureau (CFPB) rules ensure that anyone being paid to help you find a mortgage treats you fairly at key points in the process. The rules are aimed at empowering you to shop for loans to buy and own a home with more confidence.
The new mortgage rules will make the market safer and easier to understand. Lenders now have to make a good faith effort to determine if you have the ability to repay your loan. In the end, only you can decide how much you are comfortable paying for a mortgage.
You will get a copy of any appraisal or valuation at least three business days before you go to closing. Appraisals can provide you an estimate of what a home is worth. You may also obtain your own independent appraisal.
Any company that is paid to help you find or get a mortgage must train its agents, brokers and loan originators and make sure they have been through a background check. The people you hire to help you find a mortgage should be licensed or registered at the state or federal level. Ask your loan originator about their credentials.
New CFPB mortgage rules limit the fees a lender can charge and still make what is called a Qualified Mortgage. These rules do not require lenders to cap fees. You still have to decide for yourself whether it’s a good idea to pay high fees to get a loan.
Mortgages are complicated, get help from CFBP if you have questions.