Analysis Of The Dodd Frank Wall Street Reform And Consumer Protection Act

Analysis Of The Dodd Frank Wall Street Reform And Consumer Protection Act

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A brief history into its creation is when this all began when the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was put into place July 21, 2010 by President Barrack Obama, in order to combat the Great Recession. This act requires the Consumer Financial Protection Bureau (CFPB) to issue rules and systems that organize certain disclosures provided to consumers when applying for and closing a mortgage loan under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The Truth in Lending Act (TILA) was brought into effect May 29, 1968 as a United States federal law, which was designed to promote informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. The Real Estate Settlement Procedures Act (RESPA) was an act passed by the United States Congress in 1974, which ensures that consumers throughout the nation are provided with helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by abusive practices. The Dodd-Frank Act required the CFPB to recommend rules that combine but also integrate disclosures under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The final part of it was issued on November 20, 2013 and its implementation will start on October 3, 2015. For those that apply for loans on or after October 3rd, this rule requires the use of new disclosure forms for consumers at the time of application and settlement. This is known as the Loan Estimate and the Closing Disclosure. Basically, Loan Estimate is intended to mix RESPA 's Good Faith Esti...


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...t receive systems before June.” Shown in the details above, in the short term this is going to negatively affect the real estate economy because the lenders are not ready for new rule. Therefore it will also affect the borrowers because if they do not research on their own, they will have no idea that these effects are going effective Oct 1st. Now in the long term, this has a positive effect on the real estate economy and overall economy. Why will it have a positive effect, well because borrowers are going to have much more information and knowledge to rely on when it comes to borrowing and taking out a mortgage. As well as create stability in the economy mainly because there will be more enforcement when it comes to mortgages and tighter restrictions so that not everybody can take a mortgage, with taking the proper steps they need to financially take on a mortgage.

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Analysis Of The Dodd Frank Wall Street Reform And Consumer Protection Act

- A brief history into its creation is when this all began when the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was put into place July 21, 2010 by President Barrack Obama, in order to combat the Great Recession. This act requires the Consumer Financial Protection Bureau (CFPB) to issue rules and systems that organize certain disclosures provided to consumers when applying for and closing a mortgage loan under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA)....   [tags: Debt, Loan, Mortgage loan, Annual percentage rate]

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