Mortgage Modification: How Laws Are Changing
At the beginning of 2019, there were a lot of changes made to consumer laws. One of these changes included new mortgage modification laws. The amendments in mortgage servicing and loan modifications were made effective April 1st of this year.
Consumer Financial Protection Bureau (CFPB) Prepaid Rule
The general use of prepaid cards is now made more beneficial to cardholders. The Prepaid Accounts Rule of the CFPB amended the Electronic Funds Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z). This effectively implemented both existing and new protection policies when using prepaid cards. It also covered stored value cards, government benefit cards, payroll cards, and cardless mobile prepaid accounts.
Now, every financial institution that offers prepaid accounts is required to provide extensive disclosures, easy access to existing account contracts, transaction histories, periodic statements, and error resolution rights. Additionally, financial institutions are also mandated to limit and control liability for any unauthorized transactions.
Accounts with credit features are also given more protection, specifically when it comes to limiting overdraft charges. Additional protections and new regulations can be reviewed on the Consumer Banking and Payments Law of NCLC §§ 7.2.3 and 7.2.4.
Understanding the New Mortgage Loan Modification Programs
According to the Department of Veterans Affairs Mortgage Loan Modifications, it’s now possible to take advantage of mortgage modification programs to make VA loans more manageable. The official website of the Department of Veterans Affairs has more details on the exact benefits you may qualify for.
The new treatise for mortgage loan modification was implemented last February as a modification of VA loans. Furthermore, the Bankruptcy Code Dollar Amounts implemented a rule that any dollar amounts exceeding more than 50 will be automatically adjusted upwards in order to manage inflation.
Changes in dollar amount can be viewed on the Consumer Bankruptcy Law and Practice, via NCLC in digital version. However, a revised edition will also be released later this year.
Keeping Up with the Changing Laws
When it becomes difficult to repay your loan mortgage, there are modification options you can choose from. They will help you avoid filing bankruptcy or getting foreclosure notices. Mortgage refinancing is the most common strategy to avoid foreclosure. This is the best way to keep your property and assets.
On the other hand, if you still find it unappealing to get a mortgage modification, you can consult an expert who can help you make an informed decision. With a few changes in your loan terms you may be able to keep your home. Loan restructuring has always been a great solution to payment problems.
To make sure you are getting the most out of your mortgage modification program, a mortgage law consultant can help guide you through the process. The process is complex and can be confusing. If it’s your first time applying, guidance from a professional is recommended.
When it comes to your finances, it’s best to consider the existing laws and any recent changes. Find the most efficient way of repaying your mortgage loan. With mortgage modifications, you can manage your monthly payments based on your current monthly income.
Get updates on the consumer law changes and know how they can help you lower your payments. Through various mortgage modification programs available, you can likely find one for your financial situation. With enough guidance, you can adjust your mortgage terms and payments in the most favorable way to your income and personal finances.
Bartifay Law Offices
Do you struggle on understanding Mortgage Modification and how the laws are changing? Bartifay Law Offices can help you with that! Contact us today!