New Mortgage Law On the Books

Yesterday, President Obama signed the Helping Families Save Their Homes Act into law.  You can see the statement from the White House here.

This bill wasn’t mainly about consumer protection, but it will introduce some important safeguards into the mortgage market.  Here are two positive notes:

Renters’ Rights: Renters are the unsung victims of the foreclosure crisis.  Many have been evicted from buildings in foreclosure even after paying their rents on time.  The bill will require that in the event of foreclosure, existing leases for renters are honored except in special circumstances.

Knowing Who Owns Your Mortgage: This sounds simple, but previously many homeowners did not know who owned their loans because of the frequency with which companies buy and sell mortgages.  Often, transfers were not reported to homeowners, but the new law requires that homeowners be notified if their mortgage is sold or transferred.

(Photo:  Gregoryj77)