BRIEF: New Proposals on Mortgages Announced

By Richard Craver, Winston-Salem Journal, N.C.

Nov. 3--A state regulatory agency has announced six proposals geared toward more consumer protection regarding mortgage lending and the foreclosure process.

The N.C. Office of the Commissioner of Banks said that the proposals are aimed at reducing the number of foreclosures in the state.

The proposals also have the goal of helping the state implement the federal SAFE Act, which Congress passed in 2008 to set minimum standards for individual mortgage-loan originator licensing and registration.

The proposals are:

- Require a mortgage servicer to stop foreclosure efforts pending a homeowner request for assistance.

- Require a mortgage servicer to respond promptly and clearly to homeowner requests for assistance;

- Prohibit lenders from making loans if the use of the lender was required in order to obtain a discount from an affiliated party, such as a homebuilder;

- Require mortgage lenders to provide an early disclosure that compares a proposed loan offer to a standard 30-year fixed-rate mortgage loan;

- Prohibit compensation to lenders and brokers that are based on the terms of the loan;

- Require clear labels of solicitations for refinance.

-----

To see more of the Winston-Salem Journal, or to subscribe to the newspaper, go to http://www.journalnow.com/.

Copyright (c) 2009, Winston-Salem Journal, N.C.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.