- Many changes were made to the regulation of the mortgage industry in 2009. The Home Valuation Code of Conduct was amended in May of that year, the Mortgage Disclosure Improvement Act was passed in July, and the Truth-in-Lending Act and Homeowner Ownership Equity Protection Act also were put in place. This legislation forced changes to settlement statements and mortgage documentation to make them more transparent to a buyer, thus reducing the probability for predatory loans that take advantage of consumers.
- Consumer resources to ensure that mortgage standards are being followed have never been more apparent. Home buyers can speak to a loan officer's broker, a state official for the real estate and lending board and a HUD counselor at no charge prior to signing off on a loan. The resources provided to consumers are speculated to keep loan officials on the straight and narrow.
- Not complying with legislation for mortgage documentation and disclosure can result in fines, loss of licenses and even jail time for lenders. Due to very serious consequences, industry professionals work diligently to comply with current and changing loan standards.
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