‘New Mortgage Rules’ will Take Effect Friday

REALTORS® and the Consumer Financial Protection Bureau announced in a press conference that they will be closely monitoring the impact of the new rules on borrowers.

NAR has expressed concern over a 3 percent cap on points and fees, fearing that it “unfairly discriminates against affiliated lenders who have to count many more items toward fees and points than large retail financial institutions, such as title insurance charges and escrow for homeowner’s insurance,” according to an NAR release.

“The problem is that under this rule, affiliated and nonaffiliated firms are treated differently,” says Chris Polychron, NAR president-elect. “It’s NAR’s view that this would be a disadvantage to many real estate affiliated lenders and reduce the choices available to consumers of where they can get a mortgage, and because the unaffiliated lender must still use a title company, the consumer pays the same amount either way.”

Source: National Association of REALTORS(R)