http://www.nytimes.com/2009/09/27/realestate/27mort.html?ref=business JIM PAIR, the president of the National Association of Mortgage Brokers, which is based in McLean, Va., says he is pleased that the new rules do not enact a “suitability standard,” whereby loan officers are legally responsible for offering loans that best suit the borrower’s circumstances. But Mr. Pair said he was concerned that... [more]
http://www.nytimes.com/2009/09/27/realestate/27mort.html?ref=business
JIM PAIR, the president of the National Association of Mortgage Brokers, which is based in McLean, Va., says he is pleased that the new rules do not enact a “suitability standard,” whereby loan officers are legally responsible for offering loans that best suit the borrower’s circumstances.
But Mr. Pair said he was concerned that the rules would greatly curtail loan alternatives, especially for those who might qualify only for subprime mortgages.
“We’re going to have some consumers who are not able to purchase a home because of this, since most lenders don’t want to do high-cost loans,” he said. “There’s too much potential liability for them.”
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