Is the lending process regulated by the government?
Most definitely. there are many laws and government regulations that all lenders must follow to ensure that all applicants are given fair and equal treatment. For example, in 1968, Congress passed the Truth in Lending Law, which requires that lenders provide borrowers with information about a loan’s true interest rate. By law, lenders must reveal a loan’s annual percentage rate (APR). The law also stipulates that for refinancing and second mortgage loans, the borrower has up to three days after closing to change his or her mind and call the deal off. The lender may not disburse money until the three-day recession period has passed.
Most definitely. There are many laws and government regulations that all lenders must follow to ensure that all applicants are given fair and equal treatment. For example, in 1968, Congress passed the Truth in Lending Law, which requires that lenders provide borrowers with information about a loan’s true interest rate. By law, lenders must reveal a loan’s annual percentage rate (APR). The law also stipulates that for refinancing and second mortgage loans, the borrower has up to three days after closing to change his or her mind and call the deal off. The lender may not disburse money until after this three-day “recession period” has passed.
A variety of state and federal governmental agencies regulate the mortgage industry to protect American consumers. Any mortgage company that offers loan programs backed or guaranteed by the government must be approved by various agencies. Examples of federal agencies that play key roles in the mortgage loan industry include: • Federal Housing Administration (FHA) • Federal National Mortgage Association (Fannie Mae) • Federal Home Loan Mortgage Association (Freddie Mac) The law that does the most to protect mortgage consumers is the Truth-in-Lending Act, which is administered by the Federal Trade Commission. This act was designed to allow borrowers to compare lending costs to determine the true cost of obtaining credit from a lender.
Most definitely. There are many laws and government regulations that all lenders must follow to ensure that all applicants are given fair and equal treatment. For example, in 1968, Congress passed the Truth in Lending Law, which requires that lenders provide borrowers with information about a loan’s true interest rate. By law, lenders must reveal a loan’s annual percentage rate (APR). This also stipulates that for refinancing and second mortgage loans, the borrower has up to three days after closing to change his or her mind and call the deal off. The lender may not disburse money until after the three-day recission period has passed. What is APR, and how is it calculated? The annual percentage rate is a calculated rate of interest for a loan over its projected life. This rate includes the interest, all points (which are considered prepaid interest), mortgage insurance , and other charges associated with making the loan that the lender collects from the borrower. The APR is calculated
