A CALL FOR ACTION ON R-1366
R-1366 is open for comment. Below is the definition of the Amendment from the Federal Reserve Board.
Proposed amendments that would revise Closed-end mortgage disclosures to highlight potentially risky features such as adjustable rates, prepayment penalties, and negative amortization and prevent mortgage loan originators from "steering" consumers to more expensive loans.
The amendment to Regulation Z has a lot great changes except for one small change that is the small print. The elimination of Yield Spread Premium. YSP is the premium paid to banks and broker for doing a loan. This will remove the ability to do a no closing cost loan and creative lending. This will handicap the lenders and eliminate competition. Increased fees to borrowers and again slow the housing market down. Below is a link to the Federal Reserve Board-Proposals for comments. Please voice your opinion!
Submit Comments Under:
Regulation Z - Truth in Lending - Closed-end Mortgages [R-1366]
http://www.federalreserve.gov/generalinfo/foia/proposedregs.cfm
Comments(5)