Wealth-Coaching

Welcome to the real estate investment blog where we supply all those interested with real estate with information regarding sales, mortgages, investments and the like. We hope that you find this information useful and wish for you to return to the real estate investment blog often.

Well, the sub prime market debacle has finally prompted legislature to do something about it. Just recently, Barney Frank has introduced legislation that would allow the federal government to oversee the practices of mortgage brokers. Mortgage brokers have used tactics like prepayment penalties which dissuade borrowers from refinancing to a lower interest loan. In addition, the mortgage brokers have been paid rewards by lenders when they persuade borrowers to agree to higher interest loans that they cannot afford to pay. It was stated that the mortgage broker industry has bee paid billions of dollars in incentive money for these questionable practices. This explains a lot about why so many of these loans failed, and it is my opinion that the mortgage brokers and lenders pay a penalty for their actions. Frank’s bill would seek to eliminate these questionable practices and give the federal government the right to oversee their actions. It’s about time.