Monday, April 06, 2009

Pennsylvania outlaws stated income mortgage loans

"Stated income loans present opportunities for abuse on both sides of the transaction," Kaplan said. "The new documentation requirements will go a long way in reducing the potential for fraud and dishonesty."
The new regulation also requires lenders and brokers licensed by the department to use a new, simplified, one-page disclosure form that calls attention to loan features, such as a variable interest rate or prepayment penalty, which can cause loan payments to increase or make it difficult to refinance. Read more......

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