Who doesn’t remember the market crash of 2008? Its effect was felt in all the world markets, but it hit us here at home even harder, especially regarding the housing bubble. When the crash hit and the country went into recession, many American homeowners found out about the safeguards that mortgage and title companies had slipped into their contracts, since at that time the companies were barely supervised. As a response to our prior negligence, President Barack Obama drafted a new act, headed by Senator Christopher Dodd and U.S. Representative Barney Frank, to help ensure the American people would not feel the whiplash of corporate cruelty again.
How The Way Was Paved For These Mortgage Companies
Before the Dodd-Frank Act, the systems of checks in place for these companies was minimal. The system is used to monitor the finances of the company was not cohesive and was largely no longer relevant to the way we do business today. The group that existed to supervise the mortgage companies were also unregulated, and not experienced in the appropriate areas. This allowed lenders to take advantage of average Americans with no financial acumen by weaving hidden fees throughout contracts, making them susceptible to increased mortgage payments, resulting in homeowners owing more on their homes than they could sell for. This forced many Americans to foreclose on their homes.
How The Dodd-Frank Act Changes This
Obama, Frank, and Dodd created legislature which passed in 2010 and assigns government specified agencies to supervise contracting practices by implementing new regulations on mortgage companies. It also allows for only so much risk-taking, in terms of interest and financing, using its 400 new rules and standards. It’s amazing we didn’t have something like this in place before the crash, but very lucky that we do now. Americans can now be more aware of what to look for when buying a home and what seems like a huge mistake. Mortgage and title companies are now subject to the same draining process of bureaucracy that the rest of us are; this new safety net provides fertile soil for job growth and financial stability within the United States.
Stick With The Little Guys – Help Each Other!
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.