If you’ve ever had bank mortgage refinance rates and were less than happy with the deal you got when all was said and done, the Federal Reserve wants to hear from you. Banks have an unfair advantage over other lenders when it comes to mortgage refinancing and the Real Estate Settlement Procedures Act; basically, they’re exempt and don’t have to play by the rules. Now is your chance to repair the damage done by the Banking Lobby to the rules originally intended to protect you from predatory lending practices; check out this article from the Consumerist.com:
The Federal Reserve is mulling over some new rules for 35 of the nation’s biggest banks, including one that would require them to submit their annual capital plans for review. And they want to hear from you!
I don’t recommend bank mortgage refinancing to people simply because banks don’t have to play by the rules when it comes to disclosing their profit margins and markup of your best refinance rates. In fact, all they’re required to give you is an Annual Percentage Rate based on a Good Faith Estimate designed by the bank’s marketing department that is little more than a smokescreen intended to disguise their overpriced home loans.
The Banking Lobby spent millions of dollars lobbying Congress in the 90s to have the laws changed giving banks an unfair advantage. Would you ever consider trusting a lender that doesn’t have to play by the rules with something as important as your mortgage refi? Here’s your chance to stick it to the mortgage fact cats and make a difference. Let the Federal Reserve know how you feel about the way banks do business.