Higher Rates Will Require Lender Explanation

Under new rules from the Federal Reserve Board and the Federal Trade Commission, borrowers who are loaned money at less-favorable rates because of their credit ratings must be notified and given a free copy of their credit scores.

Currently, lenders don’t have to offer any explanations. These rules apply to mortgage lenders as well as other sorts of financing firms. It takes effect Jan.1, 2011.

Consumers who are given terms “materially less favorable” than “a substantial proportion” of the lenders’ other customers must receive the information, according to the report in the federal register.

Source: Bloomberg, Jeff Plungis (12/22/2009)

Signup for our Newsletter

Neil D. Lyon CRB, CRS, GRI Cell: 505.660.8600 Direct: 505.954.5505

Sotheby's International Realty 326 Grant Avenue Santa Fe, NM 87501

Design by Santa Fe Web Design


Visit Sotheby's International Realty®

This web site is not the official web site of Sotheby's International Realty, Inc. Sotheby's International Realty, Inc. does not make any representation or warranty regarding any information, including without limitation its accuracy or completeness, contained on this web site. Equal Housing Opportunity.