Under the federal Truth in Lending Act, the HELOC consumer is granted certain rights. Most importantly, you have the right to be given information about your HELOC before agreeing to the loan or paying any fees. You also have the right to cancel your home equity line of credit within a specified time frame. Read [...] [...more]
Over the past couple months, I’ve posted quite a bit about Regulation Z and home equity lender’s responsibilities. HELOC lenders can freeze clients’ credit lines. But, they cannot do so without proper legal cause. The Washington Post recently reports: “This summer, both the Federal Deposit Insurance Corp. and the Office of Thrift Supervision issued guidance [...] [...more]
More than one homeowner has signed the paperwork for a home equity line of credit, only to decide hours later that the high fees and risk to the property’s title just aren’t worth it. Fortunately, HELOC borrowers are legally permitted to back out of a deal if they notify the lender within three business days. [...] [...more]
Last week, I posted about the letter from the Office of Thrift Supervision warning HELOC lenders to follow government regulations. Hopefully, this instruction will encourage banks to avoid freezing individual home equity lines of credit without considering a borrower’s unique circumstance (for example, a home with a high value in an area that is generally [...] [...more]
This week, the federal government made some important changes to Truth in Lending laws. Most notably, they created stricter regulations on high cost home equity loans. Housing Wire reports: “For loans defined as high-cost, the revamped TILA regulations will ban stated income and related lending practices, as well as forcing lenders to assess repayment ability [...] [...more]
The Department of Housing and Urban Development recently proposed several new lending rules, including one that will affect HELOC good faith estimates. Good faith estimates are supposed to be a consumer tool. In the ideal world, a borrower could collect several good faith estimates from home equity lenders, compare their rates, and select the best [...] [...more]
If the property used to secure your HELOC is your primary residence, the federal Truth in Lending Act gives you 3 days from the day the line was opened to cancel (or “rescind”). Should you choose to rescind, the HELOC lender must return all fees including third party charges such as the appraisal. The line [...] [...more]
Under the federal Truth in Lending Act, a HELOC consumer is granted certain rights. Most importantly, you have the right to be given information about your HELOC before agreeing to the loan or paying any fees. You also have the right to cancel your home equity line of credit within a specified time frame. This [...] [...more]
