Obama's Proposed Legislation

This afternoon, President Obama released a blueprint to regulatory changes, including some affecting the future of the mortgage industry. These regulatory changes have been described as "the most sweeping regulatory changes since the Great Depression."



The Washington Post reported that the proposed changes would create "a new consumer protection agency [with] vast powers to overhaul U.S. mortgage lending practices, upending current federal rules aimed at protecting home buyers."

According to The Wall Street Journal, "Mortgage brokers also could be charged with new duties, such as presenting homeowners with the best available mortgage loans and ensuring consumers can afford the mortgages. So those of us who already do this, will just keep staying the course.

And the new agency could ban certain practices like prepayment fees or 'yield spread premiums,' blamed for incentivizing brokers to steer borrowers to costly loans."

It's important to note that these proposed changes have not occurred and have not been implemented. I will follow this story closely and provide you with the most accurate information on this important story here at my blog.