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New consumer protections coming in 2011

Keywords: Human Hand, Mortgage Document, Residential Structure, House,

Keywords: Human Hand, Mortgage Document, Residential Structure, House, Real Estate Agent, Real Estate, Moving House ( iStock) For Jessica Randklev. ltc Photo Credit: ISTOCK/iStock

It’s a fresh year but the mortgage mess remains, so several new laws will kick in under the ongoing cleanup. A look at changes for 2011:

- Loan officers in federally-chartered institutions, which include the major banks, must register in the Nationwide Mortgage Licensing System, a way for consumers to track their records. Effective Jan. 31.

- Lenders are barred from paying mortgage brokers for bringing a more profitable loan, such as one with a higher interest rate. The pay was known as “yield spread premium.” Effective April 1.

- The new Consumer Financial Protection Bureau reviews mortgages, bank fees and other financial products. Effective July 21.

- New limits allow bankruptcy filers in New York State to take up to $150,000 in home equity exemption instead of $50,000. Many borrowers facing foreclosure didn’t want to file bankruptcy because they feared the bankruptcy judge would order their homes sold to pay off some debt. Starts Jan. 22.

-Bankruptcy filers in the state can choose between going under exemption limits set by the federal government or by the state. Starts Jan. 22.

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