Significant Changes re Mortgage Loans

The Helping Families Save Their Homes Act of 2009 requires that whenever a mortgage loan securing a consumer's principal dwelling is transferred to a third party, the new loan owner must, within 30 days, notify the borrower of certian information in writing including: the name, address, and telephone number of the new creditor  as well as when the transfer took place. The statute provides for several private remedies for violations pursuant to TILA.

The rules established by the FRB regarding unfair and deceptive mortgage practices will go into effect this month.

Effective July 30, 2009, consumers must receive early TILA disclosures upon applying for a closed-end loan secured by a consumer' dwelling, including vacation and second homes.