Legislate morality? Is it possible to create a law that will force people to operate with a mindset of loving their neighbor as themselves? According to the Apostle Luke, a man’s deeds (whether good or evil) are determined by the good or evil in his heart. Since that’s the case, a law can’t be expected to eliminate evil deeds as it doesn’t change a man’s heart.
The Federal Reserve has taken on the impossible task of creating an environment where an unethical person can’t take advantage of a consumer. Do you feel safer? As of July 30, 2009, the Mortgage Disclosure Improvement Act (MDIA) went into effect. This is a huge change to how mortgage loans have been processed and explained for many years. While I believe the intent of the change was honorable, the actual change itself is going to have some less than desirable results. There are now multiple waiting periods built in to the loan process created with an attempt to make sure the old “Bait and Switch” trick can’t be employed to rip people off. I’ll create an example for you.
Let’s say you find a home you’d like to buy but in order to get your desired price you have to close within the next 7 days. Well, you’d better find a different home because you’re no longer allowed to close earlier than 8 days from the time you apply for your mortgage! Why? Because Uncle Sam believes you need that much time to decide if you really want to do this. And, if you decide at the last minute that you’d like to buy down your interest rate, you may have to delay the closing because the government has decided you need a full 3 days to decide if this is a good idea! Aren’t you glad you’re protected from…..yourself?
That’s where the rub comes in. If you’re working with someone who isn’t entirely ethical, there are myriad ways around this new speed bump. I’m not a criminal but even I can quickly think of ways this could easily be circumvented. For instance, recommending the borrower not date the documents (so they can be dated as necessary, to comply with the law, down the road); or simply using white out to erase and change the signature dates as necessary! As is usually the case, the law is just another barrier for the honest; criminals don’t care much about what the law says.
When working with, or referring to, the Baker and Lindsey | Niceville Office you can rest assured that you’re working with people that will treat you as they would want to be treated themselves. And that’s not because of any law other than God’s, and that’s good enough! We’re working hard to be sure we comply with these new rules, and we hope that you’ll continue to trust us with your financing needs and those of your friends, clients, and loved ones!
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