Clarkhoward Home

Mon-Fri 1-4pm ET
Stations near you | help

Video Minute Archives
Daily Audio Archives
Rip-off Alerts
Call of the Week

Today's Show Notes
Previous Show Notes
Clark's Greatest Hits
Free and Cheap

Ask Team Clark
Call 10am-7pm ET
(404) 892-8227

Member Center
Blogs
Newsletters
Message boards
Meet the Team

Appearances
Books
Photos
TV
Talk to Clark 1-4pm ET:
(877) 87-CLARK or
(404) 872-0750

Advertisement
Ask Clark  Looking for something on the site? Search for it here!  Also see Clark's Greatest Hits
help

Clark's ideal truth-in-lending legislation

Clark was recently heartened that the U.S. House voted to enact truth-in-lending laws in the mortgage business. This was a bipartisan effort to avoid a federal bailout of those who are in foreclosure. But now some banks are fighting to get a veto from Pres. Bush or stop this bill in the Senate. Certain unethical lenders are opposed to fiduciary responsibility, which means that the broker would have to do what's in your best interest -- not what will put huge kickbacks into his or her pocket. Banks are also opposed to letting people income qualify based on the maximum monthly payment amount. They'd rather qualify you on the teaser rate. But we have a real problem when 1 in 5 homeowners are delinquent on their loans.

Prospective homeowners need more information to make educated choices. The American Enterprise Institute has drawn up a mortgage cheat sheet (and definition of terms) that you can use as a plain-English disclosure when getting a loan. No surprise that the mortage industry also opposes this kind of disclosure! But Clark is also disappointed that Bush is opposed to such disclosures. Clark wants to see legislation that bans brokers from putting you into bad loans for kickbacks; adopts a clear language form like the one from the AEI; ban lenders from putting people into loans based on teaser payments alone; and eliminates all pre-payment penalties.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

Add your comment

Security Image * Please enter the code shown at left
what's this?

There are no comments yet. Be the first to post one!


Advertisement


This week's poll
NYC health inspectors have been handing out violations to chain restaurants that don't post calorie counts on their menus. What's your take on this?
I believe in what the inspectors are doing. Long live the food police.
This isn't a legitimate function of gov't-paid employees.
I couldn't care less. I'd be eating at home to save money!
see previous polls


Advertisement