Another new law that may do more to help homeowners in trouble.
New federal regulations designed to prevent the kind of home loan abuse that led to a $1 trillion bailout, ironically may have fallen under the radar because of all the bailout and economic meltdown news.
Less dramatic than spending hundreds of billions of dollars to bail out the nation's economy, Federal Reserve Board amendments to the "Home Ownership and Equity Protection Act (HOEPA)" could have a much more lasting effect.
That's because the new HOEPA rules outlaw abusive mortgages, specifically to eliminate future runs on bad home loans. What's more, with the loans removed from the market, consumers will be forced to change misdirected savings, budgeting and mortgage shopping habits. read more
Source:http://www.consumeraffairs.com/news04/2008/10/homeowner_hope.html
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. A mortgage loan is a secured loan in which the collateral is property, such as a home.
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