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Loan Modification
: Mortgage Lender Implode-o-MeterIllinois AG to Fed: End Incentives for High-Risk Mortgages
By Implode-Explode Heavy Industries
Illinois? attorney general Lisa Madigan urged the Federal Reserve to end financial incentives for loan officers and mortgage brokers for the types of loans written for borrowers.
According to a statement from Madigan?s office, federal law allows lenders to receive bonus compensation based on the type of loan issued, meaning loan officers who place borrowers in higher risk, adjustable-rate mortgages may actually receive incentives to do so.
Full post as published by Mortgage Lender Implode-o-Meter on December 29, 2009 (boomark / email).
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