Simple English definitions for legal terms
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Definition: The Dodd-Frank Act was created in response to the 2008 economic crisis, which was partly caused by the real estate bubble bursting. Title XIV of the Act, also known as the Mortgage Reform and Anti-Predatory Lending Act, aims to protect borrowers from predatory lending practices and establish minimum standards for mortgage products.
Examples: Title XIV includes provisions such as:
Explanation: These examples illustrate how Title XIV of the Dodd-Frank Act aims to protect borrowers from predatory lending practices and establish minimum standards for mortgage products. By requiring mortgage originators to be properly qualified and prohibiting certain types of prepayment penalties and balloon payments, borrowers are less likely to be steered towards loans they cannot repay. The additional disclosures and establishment of the Office of Housing Counseling also provide borrowers with more information and assistance during the mortgage application process. The Act also aims to protect tenants and establish a program to provide foreclosure legal assistance to low- and moderate-income homeowners and tenants.
Dodd-Frank: Title XIII - Pay It Back Act | Dodd-Frank: Title XV - Miscellaneous Provisions