DGAA bLAWg

Recent Changes to the Mortgage Process

Web Admin - Friday, January 24, 2014

By: Jay A. Andrew
jaa@dgaalaw.com
http://www.dgaalaw/jay-andrew.html
(847) 934-6000

In the wake of the 2008 financial crisis, Congress created the Consumer Financial Protection Bureau (CFPB). The CFPB is an agency that Congress tasked with regulating companies in the financial sector, such as banks and hedge funds, to ensure that consumers do not find themselves treated unfairly by such institutions. To that end, the CFPB passed a qualified mortgage rule. This rule places certain restrictions on the types of loans that banks can authorize, but it also provides them some protection against consumer lawsuits.

In addition to creating the CFPB, Congress also responded to the financial crisis by passing The Mortgage Forgiveness Debt Relief Act (MFDRA). This Act had prevented people from being taxed on mortgage debt that banks forgave. However, the Act expired on December 31st, and Congress did not choose to extend it. This expiration impacts consumers dealing with foreclosures and short sales.

Qualified Mortgages

Qualified mortgages are a feature of the CFPB’s “ability-to-repay” rule, which requires lenders to verify a person’s income and other financial details to ensure that they can afford the mortgage they want. The CFPB put this regulation in place to stop banks from recklessly giving out mortgages without checking people’s financials. The rule also prohibits a variety of loan features that contributed to the 2008 crash, like interest only loans or terms lasting more than 30 years. If the bank complies with all of these requirements, they receive legal protection for the loan.

The law places different levels of protection depending on whether the loan was prime or subprime. Consumers will find it difficult to sue on prime loans if they meet the qualified mortgage requirements. But, if they have a subprime mortgage, they may still be able to show the court that the bank did not comply with the ability-to-repay requirements, which may help them in a lawsuit.

The Mortgage Forgiveness Debt Relief Act

Congress passed the MFDRA in order to help people struggling under mortgage debt during the financial crisis. The Act helped people who owed more money on their homes than the homes were worth by lowering their tax burden. Before the Act, if a bank forgave a person’s debt, the government would tax the person on the forgiven debt as if it were income. The Act put a stop to that for the purposes of some mortgage debt.

However, the Act expired at the end of 2013, and though some members of Congress of are still talking about renewing it, that has not happened, which means that the tax break no longer exists. Now, if a person has their mortgage debt forgiven as part of a foreclosure or short sale, they may end up owing taxes on the forgiven debt.

If you have questions about your mortgage, contact a Des Plaines real estate lawyer today. Call 847-934-6000 to reach out to our firm. We serve many northwest suburban areas including Arlington Heights, Deer Park, Barrington, Buffalo Grove, and other nearby communities.


Recent Posts


Tags

personal injury claim Buffalo Grove injury lawyer Crystal Lake medical malpractice lawyer uninsured motorist Kenilworth estate planning attorney comp time preventing accidents POA Barrington employment attorney DUI defense employment law Schaumburg personal injury attorney Palatine law firm medical malpractice claims traffic tickets expungement Illinois insurance claim dispute lawyer right to work pay when paid contract forming a corporation in Illinois Illinois pet lawyer Schaumburg traffic lawyer residential real estate Arlington Heights personal injury lawyer Crystal Lake insurance lawyer personal injury attorney insurance dispute attorney School Visitation Rights Act Illinois driving without license Barrington drug crime attorney Illinois business law atorneys Illinois home inspection Deer Park DUI lawyer Illinois real estate Rolling Meadows personal injury lawyer criminal defense Chicago trucking accident attorney insurance denial appeals loopholes South Barrington real estate attorney Illinois lawyer slip and fall pregnant women real estate attorney Rolling Meadows medical malpractice lawyers IRA trust transfer eluding a police officer sole proprietorship contracts Illinois trucking safety workers comp traffic offenses Rolling Meadows traffic law firm Palatine employment law lawyer denial of life insurance Chicago car accident lawyer Crystal Lake medical malpractice law firm gift taxes Barrington criminal lawyer investment property Schaumburg corporate attorney pedestrian-automobile accident wrongful death Inverness personal injury attorney Arlington Heights personal injury attorney Illinois real estate lawyer Arlington Heights real estate lawyer liability claims Barrington medical malpractice lawyers Des Plaines drug crimes lawyer Chicago insurance law firm Schaumburg injury lawyer drunk driving denied insurance claim power of attorney federal regulations for LLCs civil litigation pedestrian accident Arlington Heights wills and trusts lawyer drug crime truck collisions mortgage Chicago corporate attorney elder abuse personal injury lawyer Illinois criminal defense attorney Inverness civil lawyer modern family estate planning IRELA Legal Info Barrington workers compensation attorney Chicago biking tips Food and Drug Administration's Food Safety Modernization Act Illinois registered agent holiday statistics FSLA commercial leases Mount Prospect wills and trusts lawyers Employment Discrimination Law Palatine Attorney Crystal Lake medical malpractice attorneys Buffalo Grove personal injury attorney dram shop law Arlington Heights Traffic Lawyer wills and trusts Palatine traffic lawyer home inspection lawyer special needs trust Rolling Meadows DUI lawyer real estate attorneys Buffalo Grove traffic attorney independent contractor fatal car accidents Buffalo Grove criminal defense lawyer Illinois mortgages Rolling Meadows car accident lawyers Palatine estate planning lawyer Palatine corporate attorney rent to own real estate contracts license suspension Illinois business lawyer rollover car crashes boating DUI Barrington employment law attorney workplace sexual harassment Detainer Actions insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys field sobriety test Illinois speeding lawyer college kids dog bites Rolling Meadows litigation lawyer no contest clauses wrongful termination Des Plaines insurance attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys unauthorized overtime owner responsibility vacation home fines estate tax caretaker rights DUI Palatine traffic accidents Deer Park workers compensation lawyer Illinois defective products attorney work unions pain and suffering Illinois employment law fiduciary rule delay Crystal Lake car accident lawyer Crystal Lake employment attorney Rolling Meadows probate lawyer Des Plaines real estate attorney digital assets Illinois Workers’ Compensation Commission Arlington Heights trucking lawyer filing a medical malpractice claim Kenilworth estate planning attorneys Attorney Ken Apicella pedestrian accidents estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Illinois construction accident attorney Illinois workplace lawyer startup company Crystal Lake personal injury attorney Illinois employment attorneys car collision Illinois employment lawyer Schaumburg elder law lawyer Arlington Heights car accident lawyer Palatine workers compensation lawyer Illinois red light cameras personal injury compensatory time crossover accidents cell phone tower data real estate lawyer Arlington Heights traffic attorney insurance claim disability benefits real estate closing Crystal Lake criminal defense attorney spinal cord injury Rolling Meadows insurance dispute lawyers insurance agents spinal cord injuries sexual images trustee license Arlington Heights tax lawyer Illinois car accident attorney Long Grove estate planning attorney traumatic brain injury Crystal Lake tax lawyer Crystal Lake personal injury lawyer Arlington Heights Attorney preventable medical errors Rolling Meadows Traffic Lawyer probate fees pet law Arlington Heights TBI attorney trauma after an accident Inverness real estate lawyer job lawyers insurance negligence operating agreements liability Barrington injury attorney civil rights violation unpaid overtime Illinois medical malpractice claim Schaumburg probate attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Federal Food Drug and Cosmetic Act Illinois job attorney head on collisions Palatine elder law attorney employment attorney Mt Prospect Attorney Buffalo Grove personal injury lawyer Super Mario Barrington real estate lawyer employment lawyer Des Plaines real estate contract privacy marijuana crimes attorney Policy Cancellation employee misclassification condo real estate leasing Schaumburg personal injury lawyers Illinois Trust Code estate planning trusts low-ball insurance settlement Thanksgiving sexual harassment cell phone accidents Retaliatory Discharge Illinois probate lawyer employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys problem employees appealing an insurance claim defective products lawyer Arlington Heights wills and trusts attorneys boating under the influence condo association Crystal Lake business law attorneys Chicago traffic lawyer Illinois attorney Deer Park criminal attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, living wills Rolling Meadows insurance attorney healthcare claims traffic laws Rolling Meadows Attorney natural gas explosion Illinois collections attorney ken apicella employees life insurance claims products liability Des Plaines pet law attorney Schaumburg employment attorney Inverness accident lawyer controlled substance hiring employees health insurance dispute income distribution deducation Mount Prospect elder law attorney subcontractor Illinois traffic attorney motorcycle accident lawyer internet traffic accidents TBI Inverness injury lawyer car accident Deer Park medical malpractice attorney digital evidence ObamaCare Schaumburg real estate lawyer Exclusions Affordable Care Act Des Plaines personal injury attorney Jay Andrew Buffalo Grove insurance claim dispute lawyers real estate zoning Rolling Meadows real estate attorney Barrington employment law firm Schaumburg drug defense lawyer landlord foreclosure privacy laws Illinois medical malpractice attorney Long Grove real estate lawyer underinsured motorist Illinois personal injury lawyers medical malpractice Deer Park motorcycle accident lawyer Long Grove estate planning Liquor Control Act Mount Prospect real estate lawyer Illinois insurance dispute lawyers drugs Buffalo Grove real estate attorney Crystal Lake car accident attorney insurance claim delay Palatine trusts lawyer Illinois pedestrian accident attorney medication errors Illinois insurance attorney meal breaks agent insurance claim denials Arlington Heights wills and trusts attorney drug crimes lawyer Schaumburg criminal law attorney Des Plaines personal injury lawyer car crashes Whistleblower Claims Illinois workers compensation attorney Illinois Human Rights Act Schaumburg medical malpractice lawyer Illinois law BUI revenge porn employee discrimination digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Arlington Heights wills and trusts lawyers liens Buffalo Grove car accident lawyer caregiver living trust benefits financial advisors civil litigation attorney business litigation construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation surgical mistakes foreclosed rental property Schaumburg wrongful death attorney bicycle accidents Illinois civil litigation lawyer Buffalo Grove medical malpractice lawyers severance agreements Barrington estate planning lawyer probate employee rights Schaumburg civil litigation attorney Des Plaines Traffic Lawyer BAC drug crimes traffic crimes whistleblower protections PTSD Illinois wills and trusts Crystal Lake bike accident lawyer Illinois workers compensation lawyer Des Plaines DUI attorney installment contracts Rolling Meadows criminal attorney consent to a search Illinois Sales Representative Act DMV Illinois medical malpractice lawyers Illinois rollover accident lawyers Palatine civil litigation lawyer medical malpractice compensation Fair Labor Standards Act personal injury law firm Schaumburg employment law attorneys Illinois workplace discrimination attorney Rolling Meadows employment law attorney hands free device Illinois living will living trust vs will personal injury claims Palatine drug lawyer fault based insurance Illinois personal injury lawyer license reinstatement construction contracts Des Plaines real estate lawyer Inverness elder law lawyer Barrington boating accident attorney South Barrington real estate lawyer IRS Deer Park traffic lawyer speeding distracted driving accidents insurance claims Schaumburg Attorney overtime violations Des Plaines motorcycle accident attorney reckless homicide CAM Illinois tax attorney hit and run accident Arlington Heights injury attorney Inverness corporate attorney insurance adjusters manufacturing trench injuries car accidents senior citizens nursing home negligence Crystal Lake employment lawyer loss of consortium taxes Rolling Meadows insurance lawyer Deer Park real estate law firm insurance disputes Illinois insurance lawyer boating accidents Illinois traffic laws Do Not Resuscitate criminal record Long Grove estate planning attorneys Des Plaines claims law firm workers compensation traffic deaths Illinois will lawyer probate claims process underage DUI DNR llinois Real Estate Lawyers Association institutional trustee living trust small business Illinois estate planning Illinois corporate lawyer wage theft insurance claim dispute Colin H. Gilbert coronavirus Schaumburg construction accident lawyer Rolling Meadows drug defense attorney Colin Gilbert Landlord Tenant Ordinance estate planning lawyer Illinois DUI attorney DUI attorney jet ski accidents Arlington Heights lawyer estate planning jet ski bad faith insurance claims Inverness insurance attorney Rolling Meadows traffic attorney insurance denials trucking accident lawyers Illinois LLC creation Barrington Illinois estate planning lawyer probate process murder defense traumatic brain injuries medical research Buffalo Grove probate lawyer Barrington criminal defense lawyer pizza emoji deadly crashes attorney fees landlord tenant law unpaid assessment irrevocable trust estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers murder charges insurance agent negligence Illinois personal injury LLCs Palatine employment attorney Illinois jet ski accident lawyer breach of contract dealing with problem employees guardianship attorney Palatine personal injury lawyer rollover accidents Palatine punch death golf accidents Illinois medical malpractice case Illinois employee rights attorney. Arlington Heights pedestrian accidents comparative negligence Illinois Probate Act of 1975 Chicago employment lawyer Rolling Meadows boating crash lawyer insurance claim dispute attorney trust payments Schaumburg criminal attorney Inverness probate lawyer power of attorney for healthcare criminal traffic violations Illinois wills and trusts attorneys Deer Park traffic accident attorney premises liability Joliet general practice lawyers car accident lawyer Illinois elder law attorney Kenilworth estate planning lawyer Crystal Lake traffic attorney construction accidents Illinois boating accident lawyer food poisoning estate planning for college students Home Sale Contingencies murder back injuries Illinois employment law attorney Schaumburg personal injury lawyer Crystal Lake injury attorney estate plan Crystal Lake traffic lawyer Des Plaines medical malpractice attorney pet bites Palatine corporate law attorneys icy parking lots Barrington personal injury attorney Des Plaines criminal attorney Chicago will attorney, social media platforms, Illinois estate planning lawyer, deed transfer motorcycle accident Illinois Smoke Detector Act Class A misdemeanor distracted driving accident victims Des Plaines collections attorney Crystal Lake pet attorney Illinois trusts attorney estate planning attorney probate lawyer Deer Park personal injury lawyer Buffalo Grove traffic lawyers Deer Park employment law attorney Barrington estate planning attorney corporate law insurance dispute Barrington Traffic Lawyer Rolling Meadows accident lawyer employment law, Illinois employment laws slip and fall accidents rest breaks Palatine business attorney Palatine probate lawyer Rolling Meadows personal injury lawyers Illinois employment laws new real estate form insurance attorney Des Plaines personal injury lawyers healthcare gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys mass shooting medical marijuana Illinois injury lawyer Self-Directed IRA Accounts Palatine insurance lawyer Illinois traffic ticket lawyer underfunded trust Illinois estate planning law firm Palatine real estate lawyer elder law insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Schaumburg car accident attorney Rolling Meadows marijuana attorney Fourth of July Chicago will attorney Schaumburg estate planning attorney brain injury Rolling Meadows business lawyer natural gas Crystal Lake pedestrian accident lawyer automated cars wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Illinois employment law firm personal injury accidents Schaumburg estate planning lawyer traffic violations defense Illinois bicycle safety dynasty trusts Chicago estate planning lawyer advance healthcare directive Buffalo Grove corporate attorney Rolling Meadows estate planning attorney child safety commercial leasing Des Plaines injury law firm capital gains tax drunk driving statistics GM ignition switches Arlington Heights medical malpractice lawyer breathalyzer test minimum wage denied insurance claims Chicago estate planning Chicago insurance claim attorneys Illinois motorcycle accident lawyer DGAA Schaumburg insurance lawyers Illinois Chicago employment attorney commercial real estate Rolling Meadows personal injury attorney BAIID Crystal Lake civil litigation lawyer trusts creditors Rolling Meadows corporate lawyer Illinois personal injury attorney probate claims Crystal Lake law firm Illinois Transfer on Death Instrument Transfer on Death Instrument cell phone digital information Des Plaines accident attorney Rolling Meadows criminal lawyer Rolling Meadows employment attorney Arlington Heights accident attorney Inverness DUI lawyer Long Grove wills and trusts attorneys texting and driving first degree murder bicycle dooring accidents Inverness traffic law firm Palatine injury attorney paid sick leave Barrington civil litigation attorney unfunded trust social media after death Palatine civil attorney accidental death benefits Illinois Wage Payment and Collection Act Barrington litigation attorney Arlington Heights insurance attorney Riverwoods estate planning lawyer life insurance trucking accidents employment contract in terrorem provision FMLA medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers auto accidents Illinois insurance claim attorney Barrington personal injury lawyer Palatine criminal defense lawyer Illinois estate planning attorney Illinois insurance claim dispute lawyers Crystal Lake employment law attorney Long Grove real estate attorney bike accident overtime pay Illinois insurance disputes Illinois traffic accident lawyer workers compensation benefits Illinois employment law attorneys Rolling Meadows employment law attorneys drug possession marijuana DUI penalities wills Inverness estate planning lawyer Inverness real estate attorney Buffalo Grove law firm Crystal Lake will lawyer Schaumburg texting while driving Forcible Entry Illinois traffic attorneys Buffalo Grove employment lawyer Family Medical Leave Act Home Remodeling Repair Act Des Plaines civil attorney federal crimes Rolling Meadows tax attorney Rolling Meadows tax attorney driving fiduciary rule ACA Illinois insurance claims lawyers Des Plaines drug lawyer life insurance lawyer Illinois small business homestead rights Palatine employment lawyer blood alcohol content blended families Palatine construction attorney product liability involuntary manslaughter Deer Park accident attorney insurance claim denial Barrington business law firm rumble strips Crystal Lake estate planning lawyer Barrington attorney changes to mortgage law pedestrian injuries, pedestrian fatality Arlington Heights estate planning attorney Arlington Heights criminal lawyer license revocation Arlington Heights employment attorney Crystal Lake accident attorney car crash injuries Arlington Heights car crash attorneys estate attorney Chicago attorney Chicago lawyer real estate life insurance policy swimming pools car accident lawyers anesthesia errors defective products Crystal lake insurance dispute attorney Illinois wrongful termination lawyer Rolling Meadows insurance dispute lawyers, insurance dispute vacation home criminal law car crash Schaumburg estate attorney IRA benefits Arlington Heights employment law attorneys suspended license Des Plaines tax law firm clemency

Archive