January 1, 2010 is around the corner and will be forever remembered by mortgage and real estate professionals alike. Most regulators commonly believe that it was an out-of-control and unregulated mortgage industry that plunged our nation into the worst economic mess since the 1930s. So…in comes irrational regulation to try and ensure that the mess never occurs again. Several new disclosure requirements will be enforced effective Jan 1. Unfortunately, the net result of the new regulations (“Reg Z”) will likely be more headaches for lenders, borrower and the other parties typically involved in a real estate finance transaction. Industry professionals seem to agree that these changes will not only confuse borrowers , but will also increase their expense. The topic is undoubtedly a controversial one.
As long as the American dream of home-ownership exists, so does the demand for residential real estate financing. But this crisis has forced us to painfully discover that home-ownership is at the DNA level of our economy – if the housing market fails, so too does the rest of the economy. Therefore, the “supply” component is less certain than the “demand” component.
Read more about Regulation Z on FDIC’s website.
- Regulation Z will be put into effect on Jan 1, 2010.
Kory Kavanewsky
Branch Manager
General Mortgage Corp.
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