For the last several years big home builders have forced their clients to use their in-house lender to receive the discounts that the builders offer on their homes. In turn, their in-house lenders put hundreds of thousands, if not millions of people into crappy sub-prime loans. Why? Sub-prime loans paid them better. But, this is about to change.
I read an article this week about the new RESPA changes coming into effect on January 16, 2009. RESPA is maybe the most important set of laws that regulate housing and lending in our country and HUD is implementing changes that BENEFIT YOU.
Home builders will no longer be allowed to offer special financing or closing cost incentives to their clients if they use their preferred lender. Builders must offer these incentives to every buyer no matter what mortgage company the buyers choose! Yeah! Builders can no longer require the use of a certain settlement provider such as a mortgage company when offering any discounts or incentives.
Buyers will soon be free to choose their lender when buying a new home!
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