Post image for An Overview of Federal Real Estate Regulations: Mortgage and Lending Reform

Ever since the boom of the real estate market, we’ve seen loans of astronomical amounts pass like tissue paper in a bathroom. I don’t think we ever paid much attention to that in real estate law until recently when it seemed that mortgage brokers were getting their hands on extremely high amounts of compensation for such inflated loans. Sure, the real estate industry booms, but does that mean you can charge a crazy amount of money for a homeowner looking for a house? The line has to be drawn somewhere….mortgage-3

That’s what the Mortgage Reform and Anti-Predatory Lending Act (MRAPL) focused on as regulated by the Bureau of Consumer Financial Protection as well as the U.S. Department of Treasury. Like the Dodd-Frank law, we’re talking about regulation here. In regards to brokers and what they can and can’t do, such concepts as yield-spread premiums and limited compensation solely on principle mortgage amounts undoubtedly protects prospective homeowners from having to shell out an ungodly amount of money for a house they really want.  It actually deters the actual abuse of loans.

Additionally, the law ensures lenders keep their eyes open as to the underwriting borrower’s ability to make payments back. The real estate industry’s all about good faith, reputation and money. When people enter an agreement, nothing bad better happen, or everyone loses.

Typically, penalties for violation of this law are common civil monetary awards. You can report any mortgage professional for receiving payment for something other than what the law states. Of course, it’s hard to figure that given the lack of experience. So you know what you do? Hire a really accomplished real estate attorney. Consult with that lawyer. Consider the possibility and ensure you’re not having to pay more money than necessary in everything from frees to bloated costs.

Post image for An Overview of Federal Real Estate Regulations: Flooding and Other Disasters

We as human beings and homeowners don’t really like the idea of waves hitting our houses and our bedrooms turning into giant fish bowls. I think that’s safe to say. Why then do some people like to live in those areas where that likelihood greatly increases? It’s not because the insurance coverage is so great, really…. Rather, not many would know that under real estate law, the federal government does, in fact, mandate all cities and municipalities provide flood flood-2insurance!

It’s the “National Flood Insurance Program (NFIP). Typically, though, this program applies to those locales where a “floodplain management ordinance” is in place. In other words, if the chance of flood is at its highest, better believe the federal government will be there to ensure you’re covered. It’s a nice thing to know for those with a summer home over in New Orleans, Los Angeles or Miami where the tide can get high.

Specifically, we’ve got the Federal Emergency Management Agency at the helm for regulating this statute and its actual application. Originally, this was the “National Flood Insurance Act of 1968,” providing that support and coverage for families where the risk of floods are generally higher than anywhere else. It’s that extra blanket – that dry blanket – of coverage alongside that of any coverage other home insurance plans may provide, securing total compensation for a great deal of funds lost and paid due to construction, loss of valuables and other expenses.

In the real estate market, we’re talking about a big deal. Consider researching ordinances in your city, township or village. If there is an ordinance along the lines of floodplain management, guess what: you may have instant insurance with the federal government in the event of a monsoon or tidal wave hitting your roof. That should help you sleep even better at night, even with the rain pelting hard on your shingles.

An Overview of Federal Real Estate Regulations: What is FIRREA?

April 21, 2014
Thumbnail image for An Overview of Federal Real Estate Regulations: What is FIRREA?

While we hold hands with the Dodd-Frank statute with regard to appraisers from a licensing standpoint, the obvious follow-through with that is to ensure that while such appraisers are considered reputable, that they still maintain their codes of conduct as outlined by the law.

Read more on An Overview of Federal Real Estate Regulations: What is FIRREA?…

Read the full article →

An Overview of Federal Real Estate Regulations: What Is the “Dodd-Frank” Law?

April 18, 2014
Thumbnail image for An Overview of Federal Real Estate Regulations: What Is the “Dodd-Frank” Law?

Michael Douglas and Shia LaBeouf (or Charlie Sheen, for that matter), beware, as Wall Street hits the legal stratosphere with this statute related to consumer protection and disclosure of appraisals for real estate. Chances are no one has heard of the Dodd-Frank law, unless you are, in fact, an appraiser. Originally titled the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” this law enforces and regulates the process by which Wall Streetappraisers operate.

Read more on An Overview of Federal Real Estate Regulations: What Is the “Dodd-Frank” Law?…

Read the full article →

An Overview of Federal Real Estate Regulations: The Patriot Act

April 17, 2014
Thumbnail image for An Overview of Federal Real Estate Regulations: The Patriot Act

Full disclosure: that’s what it’s all about. Legally, all professionals, not just in the real estate industry, have to basically report their income, whatever it may be. It’s the groundwork, the basis for sincerity and honesty, and we already know just how pivotal those concepts are when it comes to real estate law. The Patriot Act, a beacon of financial overview and respect, charges individuals and companies with the responsibility to report all revenue made in regards to cash deposits. If not fully disclosing such information, the consequences could American Flagactually be disastrous.

Read more on An Overview of Federal Real Estate Regulations: The Patriot Act…

Read the full article →