Beginning on January 30, 2011, lenders will be required to provide more detailed, easier-to-read disclosures for interest rates, monthly payments, and details for adjustable-rate mortgages. These disclosures will appear in a spreadsheet format that is supposed to make the consumer understand what kind of loan they are signing on for. Lenders will need to provide estimates of amounts to be put in escrow for property taxes or property insurance due on the loans. These new federal guidelines will also apply to negative-amortization loans, interest-only loans, balloon payment loans, and other variable rate loans for mortgages. These types of loans are examples of subprime mortgages that are still available in the current market.
Thomas, Martin, president of America's Watchdog, a national consumer advocacy group stated, "the additional clarity included in the new documentation will illustrate when a borrower's payment will change, as well as the maximum amount of a future payment after a defined period." However, Mr. Martin is also concerned that borrowers might be "further confused" and "awash in spreadsheets." The new disclosures appear to help the consumer understand what kind of mortgage loan they are signing up for, however in the long run a general consumer will still not be able to interpret what the various numbers on this new spreadsheet means.
Hopefully this is another step in the right direction in protecting homeowners from unscrupulous practices of some mortgage lenders. If you are a Florida homeowner facing a Florida Foreclosure Lawsuit due to the practices of your lender, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today.
