Home Loans
Potential for Tougher Mortgage Laws in Massachusetts
(presented by www.refinance-refinance.net - mortgage lenders)
By Martin Lukac
Massachusetts State Senator Brian A. Joyce said he will push Legislature to impose tougher rules for mortgage brokers.
A Boston Globe investigation revealed several instances of loans that appeared to violate lending laws. Senator Joyce said that brokers are the people “involved with the most signifcant financial transaction that most of us will ever engage in.”
Under the current laws, mortgage companies must register with the state. Owners are required to undergo criminal background checks. However, the loan officers are not state regulated.
“My God, we license manicurists and hairdressers,” said Joyce.
Joyce plans to reintroduce a bill to the Legislature that would require all loan officers to register with the state and be subject to exams.
He said that fraud “has an impact on the person who sells the home, the mortgage company that might not get paid, and the secondary market for mortgages that doesn’t receive payment.”
The state’s Divisions of Banks said it would be open to changes to the law, provided that companies that hire loan officers maintain responsibility for their actions.
“Should we be looking at the system?” asked Joseph Leonard Jr., general counsel for the Division. “The Division continues to consider the merits of licensing individual loan originators just as some other states do.”
The Globe report revealed instances of overstating incomes, arrangements for loans that cost more than the borrower can afford and even identity theft. Many victims have lost their homes, filed bankruptcy and lost their credit standing.
Victim advocates say that the current systems allows for loan offiers who don’t understand predatory lending laws.
Andrea Bopp Stark is!
a lawye
r who represents a number of mortgage fraud victims. She says that more enforcement is the solution, not just oversight.
“Enforcement is very low because of lack of resources and of knowledge of who is doing what,” said Stark. “Legislation is OK. It’s not great. It is there, it just needs to be enforced.”
|
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! |
===========================================
For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
===========================================
Technorati Tags: mortgage refinance, refinance, home refinance, bad credit refinance, bad credit mortgage refinance, loan refinance, home loan mortgage refinance, mortgage refinance information, refinance mortgage, home equity loan, home equity loans, equity loans, debt consolidation, debt consolidation loans, debt consolidation loan, consolidation loans, credit card debt consolidation, credit card consolidation
