Legacy Management and Dominick Sartorio Bulletin: Federal Reserve Adopts New Reg for Consumer safety

FOR IMMEDIATE RELEASE
New YORK ,New Jersey, Connecticut, New York, United States of America (Free-Press-Release.com) August 17, 2010 -- "The Federal Reserve has adopted new rules that will ban yield spread premiums on mortgages", stated Dominick Sartorio, Director of New Business at Legacy Management Consulting Group LLC.


"The Federal Reserve has adopted new standards that will put a ban on yield spread premiums on mortgages, a practice that had unfairly led homebuyers into being saddled with unfairly high mortgage rates." stated Dominick Sartorio, Director of New Business at Legacy Management Consulting Group LLC.

As the New York Times Reported, the premiums involve lenders paying a "bonus" to mortgage brokers who brought them customers willing to pay high-interest rates on loans. "This practice had ultimately led to brokers forcing much more costly high-interest loans onto borrowers" stated Anthony Urbano, Principal at Legacy.

These new rules, which will come into effect in April, will ban making any payments to lenders or brokers based on the loan's interest rate. Additionally, the lender or broker must also provide the borrower with other options, including, but not limited to, the lowest-qualifying interest rate.

"People didn't just happen to end up in risky loans," Michael D. Calhoun, president of the Center for Responsible Lending, told The New York Times. "Mortgage brokers and other people on the frontlines were getting two to three times as much money to push buyers into those loans than they were into 30-year fixed-rate loans. So what do you think happened?"


Also important to note is that these newly adopted rules provide much better protection for consumers, however, will still allow for payments and/or compensation based on a fixed percentage of borrowed amounts.




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U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties.

The information contained herein was prepared by Legacy Management Consulting Group, LLC from public documents for general informational purposes. Its contents should not be construed as professional advice, and readers should not act upon the information contained herein without consulting a professional. This information is presented without any representation or warranty as to its accuracy, completeness or timeliness. Transmission or receipt of this information does not create any relationship with Legacy Management Consulting Group, LLC. Electronic mail or other communications with Legacy Management Consulting Group, LLC cannot be guaranteed to be confidential and will not imply nor create any relationship with Legacy Management Consulting Group, LLC.

More information can be found online at http://www.lmcllc.com

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