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

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

Archive