New financial regulations take hold in 2011
Mortgage loan shoppers gain more protections
Dodd-Frank has set new financial regulations to end a few of the shadier tactics employed by some lenders and mortgage brokers to boost profits, Barr says.
One example: Some banks offered commissions to brokers who steered homebuyers toward mortgage loans with interest rates higher than what they would otherwise qualify for, says Barr. Thanks to the law, homebuyers won't have to worry about such practices in 2011.
Mortgage borrowers also will benefit from simplification and consolidation of some of the disclosures associated with getting a mortgage loan.
"It's a set of changes designed to make it easier to understand mortgages and compare them," says Barr.
For a full look at how mortgage hunting under Dodd-Frank is different, see the Bankrate story "Financial reform and your mortgage."