President Obama has signed into law “The Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173)”.
The new legislation will protect consumers from unfair credit card interest rate hikes, Bank overdraft fees will be better regulated, College Student Loans will provide clear information about the obligation, more information will be provided about the cost and risks of Mutual Funds and other investment products so the investor will be better informed.
Under the new provision you will be less likely to be pushed into a risky loan with a high interest rate. Lenders will not be allowed to pay mortgage brokers a commission based on the interest rate for a home loan. So there’s not an incentive for a mortgage broker to put you into a high interest rate loan. Prepayment penalties are limited or prohibited, depending on the type of loan. Before your loan is approved, lenders are now required to determine if you realistically can pay your mortgage payments, factoring in insurance and tax. If you are denied credit or if you are approved for a rate other than the rate your lender gives its best customers for that credit product – you are now entitled to receive a credit score. This means that for the first time, consumers who receive such a credit disappointment will be entitled to information from the lender, including their credit score, for free.