Consumer watchdog weighs limits to mortgage fees

[Eugene]

Source: Associated Press

Consumer watchdog weighs limits to mortgage fees

AP foreign, Thursday May 10 2012

DANIEL WAGNER

AP Business Writer= WASHINGTON (AP) — The government's consumer-finance watchdog is weighing an overhaul of the fees consumers pay to obtain mortgages.

The Consumer Financial Protection Bureau said Wednesday that it might ban origination fees that vary with the size of the loan, known as "origination points." Lenders would charge the same flat fee for all loans.

It also wants to limit the use of "discount points," which consumers pay in exchange for a lower mortgage rate. Some lenders included discount points in every loan they offered. The points amounted to an extra fee. The C-F-P-B might force lenders to offer an option without discount points, so that the value of the discount is visible.

The agency is overhauling mortgage rules under the financial overhaul passed in 2010. The changes would take effect in 2013.

http://www.guardian.co.uk/world/feedarticle/10236124

[msongs]

1. mortgage fees are pretty much a scam - someone types into a computer for 30 minutes =$8000 in fees

and they act like they are doing you a favor. The only bigger scam is buying and selling mortgages. You get stuck with the massive interest payoff and they are profiting off of your debt + you don't even get a cut from the sale of YOUR asset.

[Po_d Mainiac]

2. Riigght :puke:

Patience...Cantor and Co. ain't done guttin Frank-Dodd....And the dems (save Liz Warren) are stuck in silent (stupid) mode .Put a phork to it

http://www.rollingstone.com/politics/news/wall-streets-big-win-20100804