U.S. Senators fight new mortgage rules
Since the onset of the recession, many Americans have been struggling with the financial weight of mortgage payments and are looking to fight lenders over allegedly improper foreclosures.
These trends have led U.S. lawmakers and consumer advocates to fight a new amendment that would make challenging these decisions in court more difficult.
Currently, consumers have up to three years to fight lenders who they feel provided inadequate information on their home loans, Dow Jones Newswires reports. However, a new Federal Reserve proposal would now require homeowners to get a new mortgage, or fully pay off an existing one, before it can be terminated.
“The mortgage market needs greater oversight and accountability to restore borrower confidence lost in the mortgage crisis. The proposed rules would undermine this goal,” wrote the lawmakers in a letter to the Federal Reserve, the news source reports.
Led by Senator Sherrod Brown of Ohio, the lawmakers say the revisions are unnecessary given the current mortgage climate, and the fact that recent practices, such as the robo-signing controversy, have now come to light.
Additionally, they say that given the high credit card debt and monthly payment load carried by these homeowners, conducting the proposed task would be an impossible feat for many individuals.