80° Good Afternoon
80° Good Afternoon
ClassifiedsReal Estate

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.


We're revamping our Comments section. Learn more and share your input.

More news