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This is not a law yet — but some version of it will probably be passed. It would be a good idea to keep an eye on the progress.
Jackie
http://thomas.loc.gov/cgi-bin/query/D?c110:3:./temp/~c1107H46FD
HR 3915 passed in the House on Friday. See the link for details of this new anti-predatory lending law.
I’m not sure if it is law or if there are still more steps before it becomes law.
From what I could see, it mostly it affects mortgage brokers HOWEVER… if you read it closely, it could also affect you too.
It specifically states that the law applies to “purchase money loans” So, buying and selling with seller financing will have new rules and regulations. It appears that a mortgage brokers license will be required.
Prohibits prepayment penalties
Late fees cap of 4%
Restrictions for balloon payment
the list goes on and on…What about mobile homes? Are they included in the rules?
The scary thing is that this is a FEDERAL law and the FTC, OCC, HUD, OTS and FDIC will jointly prescribe regulations.
The only thing I see good out of this is if you’re doing master leases. If the seller gets foreclosed, the lease will prevail.
Does any one else have a take on HR 3915??
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