mortgage

Financial reform and your mortgage

What lenders can't do
What lenders can't do

During the Wild West days of the housing boom, lenders were known to give subprime mortgages to people with good credit who could have qualified for low-rate prime loans. The practice -- called "steering" -- now is illegal.

In a related abuse, mortgage originators sometimes lied to borrowers about their credit, telling borrowers they had low credit scores when they really didn't. That practice now is illegal.

The legislation bans abusive lending practices on the basis of race, ethnicity, gender or age. This rule targets "affinity fraud," in which a loan officer of a given ethnicity fleeces borrowers of the same ethnicity by taking advantage of their trust.

It's illegal to lie about the appraised value of the property being mortgaged.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Polyana da Costa

Home prices rise at slower pace

Home price growth has slowed significantly. Should you be concerned?  ... Read more

advertisement
Partner Center
advertisement

Connect with us