Bureau proposes plan for valuing property and notifying homebuyers
THE AGENCY Consumer Finance Protection Bureau
THE ISSUE Making sure consumers get appraisal information from lenders and requiring lenders to do appraisals on high-risk mortgages
- Creditors would be required to furnish appraisal documents for applicants seeking a home loan. Appraisals would be provided at least three days before a loan closes, even if the loan isnt approved. The documents would be provided at no additional cost to the loan applicant, but creditors may charge a fee to conduct the appraisal. Creditors also would be required to tell applicants of their right to receive an appraisal at the time they apply for a loan.
- High-risk mortgage lenders would have to obtain appraisals on property for the first time. They would include a written inspection of the homes interior and must be done by a certified appraiser. A second appraisal would be required if the seller bought the home at a lower price in the previous six months. The proposal is aimed at preventing fraudulent flipping on properties using inflated values. High-risk mortgages are loans on homes with interest rates above a variable threshold. That is determined by how much of a loans interest is above the Average Price Offer Rate, which is an estimate of typical mortgage rates. For example, if the Average Prime Offer Rate on a 30-year loan was 3.64 percent, a high-risk mortgage would have a rate of 5.14 percent. This rule also is proposed by several other regulatory agencies, including the Federal Deposit Insurance Corp. and the Federal Reserve.
HOW YOU CAN BE HEARD
Deadline to comment on both proposals is Oct. 15. You may comment on the proposals electronically at www.regulations.gov. Identify comments for providing appraisals as Docket No. CFPB20120032 or RIN 3170AA26. Comments directed at appraisals for high-risk mortgage loans should be identified as Docket No. CFPB-2012-0031 or RIN 3170AA11.
TO LEARN MORE Look under Regulations at http://www.consumerfinance.gov/
The Associated Press contributed to this report.
Caldwell seeks bid for downtown
THE AGENCY City of Caldwell
THE ISSUE Improve area around Main Street to enhance development and improve safety.
WHATS PROPOSED The city has spruced up sidewalks and added other amenities along 6th, 7th and Main streets using a community block development grant. The city had some money left over after the other projects were done, so it is letting out bids to do the 700 block of Main Street. Projects include putting in an irrigation system to water plants hanging from lamp posts, upgrading lamp posts, adding benches and adding red brick pavers.
HOW YOU CAN BE HEARD Bids must be received by 11 a.m. Friday, Sept. 7, at the Caldwell City Clerks office, 411 Blaine St. in Caldwell. Bids will be open and read at 11:30 a.m.
TO LEARN MORE A copy of the project can be obtained at the city engineers office at 621 Cleveland Blvd., Caldwell.