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Articles on a few of the hot topics in lender law today are set forth below:
- The Mortgage Crisis, Causes and the FHA Solution
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Federal Reserve rate increases and the collapse of the mortgage backed securities (MBS) market played
a significant role in the Mortgage Crisis. New FHA programs offering flexible loans in high cost areas up to $729,750
may help ease the crisis in the months to come.
- Predatory Lending
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TILA and many state lending laws have addressed predatory
lending, imposing special disclosure requirements and a number of restrictions on certain high cost/high
interest loans.
- Truth in Lending, Right to Rescind
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Under certain circumstances, a borrower can rescind a loan,
requiring the lender to release its interest in the real property security
before the borrower returns the loan proceeds.
- Financial Privacy
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Federal and State Laws protect consumers' Financial Privacy and
govern the use of nonpublic personal financial information. Financial
institutions, including lenders and brokers, must give notice of their
privacy policy, protect the security of such information and contract with
their vendors to assure that the information is secure in the vendors'
hands.
- Credit Reporting
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Federal and State laws impose requirements on credit reporting
agencies, credit reporters and users of credit reports. Identity theft
rules may prevent a lender from selling a loan, or sending it for
collection, if a Credit Reporting Agency upholds the borrower's claim of
identity theft.
- YSP's and Broker Fees
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Brokers have a number of ways of earning compensation in
originating loans, some highly regulated, some nearly free of regulation.
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