New Reform only hurts borrowers

Services for Real Estate Pros with Scanlon Signing Services


While reform was needed for the out of control lending environment, the government is destroying what is left in the fragile housing market with new guidelines that only seem to hurt the consumer.

HUD has announced a new guideline that states if the borrower has officially disputed anything on there credit report they must retract there dispute even if it was an error on the credit report or they will not get a mortgage. Also it takes weeks to get the dispute removed and that can kill the loan process.

On April 1st the Dodd-Frank Financial Reform Bill was passed. This caps the amount loan officers can earn per loan transaction. But this hurts consumers because loan officers cant help cover closing costs for borrowers or reduce there interest rate.

These changes do not help the consumer, it just makes it harder to get a mortgage and creates more out of pocket expense.

Lisa Scanlon, CSA

Comments (4)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Lisa, it's vitally important that all individuals monitor their credit scores. Fortunately it's easy enough to do.

May 12, 2011 06:23 AM
Bryan Cerny
Rose & Womble Realty - Chesapeake, VA

Lisa, Vickie is right...any one can stay on top of the credit scores.  Yet that new Dodds-Franklin Bill will cause buyers to jump extra hoops and give us all a bit more to do.  But such is life!!!!

May 12, 2011 06:29 AM
Lisa Scanlon
Scanlon Signing Services - Bradenton, FL
Certified Signing Agent

Maybe it will cause borrowers to be more aware and monitor there credit closely. Thanks for your comments.

May 12, 2011 06:46 AM
John Saari
Worcester, MA
"The Mortgage Buddy"

Nice post Lisa. We need less regulation for sure and more consumer education.

May 12, 2011 10:26 AM