Mortgage Rates Break Record, New Legislation to Protect Borrowers

• June 25, 2010

by UrbanTurf Staff

“Rates are at historic lows.”

The phrase has become hackneyed as mortgage rates have hovered in 5 percent territory for over a year now. But yesterday, “historic low” reclaimed its literal meaning: Freddie Mac reported that the average rate on a 30-year fixed-rate mortgage was 4.69 percent during the week prior. That is the lowest rate ever recorded since Freddie started tracking them in 1971.

In the exciting world of mortgage finance, this really is a historic moment.

In other big mortgage news, Congress reached agreement early this morning on financial overhaul regulations, legislation that has a number of provisions related to mortgages. Of particular note:

• Lenders would be required to check a borrower’s income, credit history and job status to ensure that they are able to repay a home loan. (Frankly, any lender that is not already doing this should not be in the business.)

• Bonuses for mortgage brokers who steer borrowers to certain high-priced loan products would be banned.

• Mortgage origination fees would be limited to three percent for most loans. Origination fees are charged by the lender for evaluating, preparing, and submitting a proposed mortgage loan.

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_break_record_new_legislation_to_protect_borrowers/2205