Alert
Close

   

Enter the Family Fun Travel Sweepstakes. No purchase necessary. See official rules

Highlights

Open
AARP Family Vacation - Photo Contest

Contests and
Sweeps

Enter the AARP Family Vacation Photo Contest

No purchase necessary. Ends 5/31/15. See official rules. 


Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

You Could Choose Your Dream Vacation
Happy African American couple

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Financial Regulatory Reform

Mortgage Reform for Borrowers

New law requires "lenders to do more," restricts prepayment penalties

Now under new mortgage reforms, supported by AARP and signed into law in July 2010, an experience like the Jacksons' should be a thing of the past, experts say.

Most important, under the new law, lenders are required to verify a borrower's income and assets to ensure that they will be able to pay off the loan, even after any interest rate adjustment occurs. Traditionally, that often didn't happen. Instead, it was common for lenders to initiate so-called stated income loans, in which they relied on a borrower's testament of their income and did not take steps to verify earnings.

"At one point, people said all you needed was a pulse to get a loan," says Norma P. Garcia, a senior attorney at Consumers Union who's been advocating for mortgage reform since the 1990s. "The law requires lenders to do more to make sure that borrowers will actually be able to repay the loan."

In addition, the recent reforms eliminate incentives to mortgage brokers for steering people toward more expensive loans than they could qualify for. And prepayment penalties will be prohibited in most cases.

"The safety net had a lot of holes in it, and the lenders took advantage of that and consumers were the ones who suffered," Garcia says. "This is long overdue."

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

member benefit aarp financial service auto insurance

AARP® Auto Insurance Program from The Hartford offers members no-cost quotes.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Woman holding smartphone in city, Google map tool

Members can find discounts on the go via the AARP® Member Advantages Offer Finder app.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Advertisement

Advance your skills. Transform your career.

Explore your learning possibilities.