| Imagine suing Wall Street because your mortgage | | | | brokers a larger commission if the property owner |
| company had financed you for a loan that you | | | | takes out a loan at a higher cost than necessary. The |
| couldn't repay! It sounds unreal, but a new bill | | | | proposals are not expected to take much effect until |
| proposed would allow just that! The mere fact that | | | | early next year, giving plenty of time for the |
| there is even such a bill being thought of could serve | | | | opposing factions to organize themselves. |
| as a warning to all of us that care must be taken, as | | | | Mr. Dodd's bill would also ban such practices as |
| not all financial institutions are not equal! | | | | subjecting borrowers to prepayment penalties. Having |
| While this proposed bill may get opposition from Wall | | | | to make these penalty payments hinders borrowers |
| Street and mortgage companies, if passed it will | | | | from trying to refinance or pay off their loans early. |
| make it easier for struggling home owners to pursue | | | | Sometimes the penalty written into the loan contract |
| other financial options for their home. | | | | can be as high as three months extra mortgage fees |
| It will be easier for anyone who wants to pay down | | | | or a lump sum such as $3000.00. Naturally this |
| their mortgage, or who wants to try and re-finance | | | | discourages change to someone who is already |
| their home, if the new proposals by the Senate | | | | struggling financially. |
| Banking Committee are accepted. | | | | One advantage of this bill is that it has given extra |
| The chairman of the Senate Banking Committee, | | | | understanding to the ordinary house buyer. Whether |
| Christopher J. Dodd is introducing this bill in the hope | | | | it gets through or not, it has brought awareness for |
| that it will restrict certain lending practices. It was | | | | the type of questions that need to be asked when |
| prompted by the surge in default rates on | | | | looking for financing. |
| mortgages made to people with poor credit rating. | | | | It will be a struggle to get this type of bill through, |
| One of the advantages to this bill for homeowners is | | | | but it is gratifying to know that in this case, the |
| that it will legislate for mortgage brokers to act in the | | | | Senate Banking Committee are backing the man on |
| interest of the borrowers. This will discourage the | | | | the street! |
| practice of mortgage lenders to pay mortgage | | | | |