Could New Mortgage Broker Rules Hurt Homebuyers?

mortgage brokers
mortgage brokers

Could new mortgage regulations created to protect homebuyers under the Truth in Lending Act actually hurt more than it helps? The debate rages on, as mortgage brokers brace for what some argue will lead to less competition in the market, and therefore less credit for consumers. Charles Hugh Smith at our sister site, DailyFinance, explores the nuances of the new rules set to go into effect on April 1, to explain why the amendments may be shortsighted -- even harmful -- for prospective homebuyers.

New regulations limiting mortgage brokers' compensation go into effect on April 1, and they might prove to be appropriate for an April Fools' Day. Though aimed at unscrupulous mortgage brokers, it seems the regulations will instead hit the nation's struggling housing market.