New rules will soon take effect governing the industry that grants mortgages to potential homeowners. These regulations are intended to protect the interest of the homeowner as he is granted a loan to purchase a home. They are federal laws. There may be additional laws enacted in the state of Pennsylvania that will influence the banking industry. Mortgage lending York PA results will be safer for the mortgagee.
A 2005 Pennsylvania report was released by the banking department. It contained information about residential homes that were foreclosed on. There were also abusive lending practices being used in the state.
Now a Consumer Protection Act requires reporting of certain details. Some examples are finance charges, the full sale price and the full amount being financed. These facts must be made clear to the borrower. If foreclosure should become necessary in any case, the homeowner will be made aware of it well in advance of being served with papers.
In Pennsylvania those who offer mortgages are required to have a state license to do so. Proof of training and certification is required and will be displayed prior to licensing. A background check on the lender is required. If a lender is going to foreclose on a property, the homeowner must be notified well in advance.
A great many unfortunate homeowners were forced into foreclosure when the real estate recession left their homes worth less than the balance of the money owed to the bank. These were responsible people who had paid their loans regularly over a number of years. Many faced foreclosure.
The mortgage lending York PA regulations will never be quite the same as before the recession. The details of each loan must be fully clarified prior to paperwork being signed. This is the most costly purchase most folks will ever make. It is imperative that they understand what their responsibilities are and what the ramifications will be if payments on not made on time.
Find a review of the advantages you get when you use the services of a mortgage lending York PA company and more information about a reputable mortgage firm at http://www.myhomelender.net now.