Wednesday, April 29, 2015
More Options for Low and Middle Income Americans
The Mortgage Choice Act was signed recently and its intention is to improve consumer access to mortgage credit. The National Association of Realtors (NAR) lobbied to get this bill signed last Tuesday and it means less restrictions on lending. While this formula looks frighteningly familiar, we are assured by NAR leadership that this time is different. No one wants a repeat of 2008!!
With bipartisan support, this act aims to make loan options available to low and middle income Americans who strive for financial independence by reworking the definition of a Qualified Mortgage. It is supposed to improve access to credit while still protecting loan consumers from bad loans. In addition, it would amend the Truth in Lending Act that deals with points and fees to help maintain a healthy and competitive marketplace for loan applicants.
While there’s politics in favor of both sides on this issue, bipartisan support in a vote 286-140, shows that congress wants to make the goal of homeownership more available to all Americans.