Something to Talk About - Mortgage Lending

                                          
Mortgage lending has sure changed over the past few years.  The mortgage lending environment is definitely a cautious one, and one you should be ready for.  Whether you are refinancing or purchasing here are a few things a qualified borrower should have:

- Good credit history 
- Stable income 
- Documentation, responsible lenders today will want    documentation verifying your income (like W-2 forms, tax returns), employment, credit history, and assets -such as bank statements to verify.

Today's market is a rare buying opportunity so lets take advantage while you can!

For more information visit:  www.freddiemac.com

Changes are coming for loan originators and mortgage brokers too.  The Dood-Frank Act was signed by President Obama in July 2010.  The Act will change financial regulations in the U.S. by establishing new regulators bringing more entities under the regulatory umbrella and giving new oversight and enforcement authority to federal regulators. 

What this means for loan originators such as a broker or loan officer; they may NOT be compensated on the interest rate or terms of the mortgage he or she arranges for a borrower.  It will also prohibit a loan originator from being paid by both the borrower and a lender when originating a loan. 

The new rules are intended to prevent originators from steering borrowers into high-cost loans that are not in the borrowers best interest in order to increase their own compensation.  Originators may still be compensated based on the loan amount, in a common practice.  The new rules will take effect April 1, 2011 

Click here for a brief summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act