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Monday late: Short & Sweet
posted at 2008-08-18 23:55 | Last modified 2008-08-19 10:36
Short entry tonight – I have to be up (relatively) early to catch a bus for Obama’s NC Magical Mystery Tour tomorrow morning.
Foreclosure bills
Even though NC’s predatory lending laws helped spare homeowners here the worst of the subprime crisis, banking experts still expect 50,000 to 60,000 adjustable rate mortgages to foreclose in NC in the next two years. The new legislation is expected to cut that number in half.
- Requires lenders to give the state banking commission and borrowers 45 days’ notice before initiating foreclosure proceedings
- Gives the State Banking Commissioner the authority and resources to review those loans for abusive practices
- Allows the Banking Commissioner to negotiate directly with lenders on homeowners’ behalf
- Includes more support for legal aid and counseling services to help homeowners fight foreclosures
- Curbs abusive industry practices, like bonuses (aka “rate spread premiums”) for brokers who sell high-rate loans to people who actually qualify for better terms
- Requires all brokers and servicers to register with and report to state regulators
- Sets up a database to track high-risk loans and monitor their status
- Applies only to family-owned and occupied homes, not to investment properties or speculators
Lawmakers and consumer advocates agree the package offers NC homeowners some of the best protections in the country. They’re hoping it’ll become a national model. The full-fledged program starts up Nov 1st, but borrowers in trouble can get help at the Banking Commission before that date.
Cindy under wraps
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