A potential shake up by congress could occur in the mortgage industry.
According to the National Association of Realtors and Realty Times there must be a balance between safeguarding consumers in the lending process and ensuring reasonable access to mortgage capital. Therefore in support of Congress, NAR has said that reform to the mortgage lending system is needed to restore consumer confidence in the economy and the housing market.
The recently introduced Mortgage Reform and Anti-Predatory Lending Act of 2009, H.R. 1728, contains many of the reforms NAR has been seeking. The bill makes many reforms including one which would require lenders to retain at least a five percent credit risk on every mortgage they write that is not a 30-year fixed rate. However, the bills main role is to remove or cut down risky mortgage features such as negative amortization, interest only and short term adjustable rate changes.
Naturally there are some skeptics who want to avoid over regulation, however the main aim is to ensure consumers get more choice and access to safer mortgage products.
This story will be watched closely by all those in Malibu.
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If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
