Home mortgage disclosure is a part of the Fair Housing Act. The Fair Housing Act established the FHA and insured home loans for low and moderate-income families. These insured loans were supposed to help stabilize the real estate market, but they helped cause a few problems. Between the credit crisis of the 80s and today's financial climate not only have there been foreclosures, but also an increase in foreclosures because there are too many homes for people to afford. The result is a decline in home values and income levels. These changes caused the Fair Housing Council to come up with a new law that the Congressmen had the best of intentions to amend.  Here is some more information about the home mortgage disclosure adjustment act.

 

The disclosure act was meant to help consumers who are being cheated by predatory lending practices on the part of the lenders. The lenders are supposed to disclose the data points regarding loan rates and the fees that are associated with the loan. The data points are also supposed to show the income levels and monthly expenses that would be associated with mortgage loans.  Visit: https://regulatorysol.com/hmda-scrubs/ to learn more about this act.

 

The home mortgage disclosure act was amended by H.R. 1425. The amended act is called the Protecting the Public's Interest in Lending Act (H.R. 1425).

 

There is a new provision for borrowers in this new law. It was added by the Obama administration as part of the fair lending process. Borrowers can now sue their mortgage credit lenders under the new law if their rights are violated. The borrower will be entitled to back payments that were paid out but for whatever reason, the lender violated the loan provisions. As soon as this happens the lender has to prove it was unintentional. In other words, the lender has to prove they were unaware of the violation or did not know about it until after the transaction closed.

 

If they are unable to do so the lender will have to pay damages. This settlement money is based on the percentage of the total mortgage credit that was given to borrowers. This settlement money can only be obtained if the lender satisfies their obligations under the Fair Housing and Fair Lending Act. The Fair Housing and Fair Lending Act was included in the U.S. Constitution and is part of our national heritage.

 

The home affordable housing act also known as the FHA and VA homebuyer programs are designed to help promote housing affordability for home buyers and to further the goals of the fair housing council. The FHA program helps the homeowners who need assistance buying a home by ensuring that buyers get a decent home at a reasonable price. This agency also helps develop the community by providing housing incentives. The VA homebuyer program is set up to promote home buying for veterans and to give them a good home at a reasonable price. The government and private organizations worked together to make this possible.  To gain more knowledge on this topic, go to: https://en.wikipedia.org/wiki/Home_Mortgage_Disclosure_Act.