NEW LOAN DISCLOSURES WILL CAUSE A DISRUPTION IN THE REAL ESTATE MARKET
The real estate market continues to grab national attention as bank continue to foreclose on homes, unemployment is high along with uncertainty in the American economy. Many people are starting to cutback on expenses and looking at the bottom line. Hey, I think this a great trend in our country. I had seen for years people refinancing their home two times to take cash out just to blow it on toys. Change continues to happen in the mortgage world as we will have to follow new mortgage disclosure laws starting January 1st, 2010.
Housing of Urban Development (HUD) has been working for years on developing a system to show the true costs of doing a loan including broker fees, banking fees and the true payment with no surprise in payments like we experienced a few years back. Many people are against this change because they believe it will only confuse the consumer by going from one page to a three page document with full disclosure. How is this to be interpreted? Regardless, the changes have been made by the Federal Government. Now, we must implement the change. One can either buck the system or embrace it.
TOP 5 REAONS PEOPLE RESIST CHANGE
- NEGATIVE ATTITUDE ON ALL NEW CHANGES
- MUST PUT FORTH EFFORT TO LEARN NEW SYSTEM
- OTHER INTENTIONS ON THE PLATE
- POWER STRUGGLE BEGINS BETWEEN OLD AND NEW INFORMATION INSIDE COMPANY
- TOTALLY DOES NOT AGREE WITH THE CHANGE
The large banking institutions have an advantage over smaller firms to be better equipped with the new changes by have the financial and human resources to make this change happen quickly in order to gain market share in the banking industry. People are still buying homes with mortgage rates low with some great deals on the market.
HUDs overall efforts is to stop the guess work when it come to obtaining a mortgage. Also, they want to avoid the bait and switch at the closing table for the consumer. They have put these new guidelines in to protect the consumer and to build confidence back into the financial industry. RESPA reform is to create a better mortgage regulation. All mortgage loan originators must be tested and registered in 2010 under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
Change is constant! We either embrace the change or be left behind.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
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