Public Law 115-174 was signed by the President on May 24th amending sections of the Dodd-Frank Act. This act places regulations on the financial industry protecting consumers with rules that prevent borrowers from abusive lending and mortgage practices.
A number of the legislation changes will impact consumer rights as they relate to the Fair Credit Reporting Act, which regulates activities pertaining to the reporting of consumers’ credit information. Our Miami foreclosure attorneys are continuously monitoring the potential impact of new legislation. Included below is a review of three legislation changes and their impact on consumer rights.
Section 304 of Public Law No. 115-174
The Protecting Tenants at Foreclosure Act will be revived once section 304 of Public Law No. 115-174 goes into effect on June 23, 2018. This legislation will protect legal tenants whose landlord’s building is being foreclosed. It states that tenants may legally remain in their units for the duration of their leases, even though the building is in foreclosure. This will not apply when the buyer intends to occupy the unit as a primary residence at the time of foreclosure sale. In the event of an eviction, all tenants have the right to receive 90 days notice, including those without leases.
Section 313 of Public Law 115-174
The Servicemembers Civil Relief Act is a federal law intended to ease legal and financial burdens faced by military personnel and their families while called to Active Duty. Adjustments to this legislation provide a safeguard from foreclosure to covered personnel when residential mortgage loans are extended prior to their active duty. Section 313 of Public Law No. 115-174 reinstates a one-year period and eliminates the previously established clause.
Section 309 of Public Law No. 115-174
An amendment was made to the veterans housing benefit regulation which addresses abuses on the part of creditors who flip veterans into refinanced loans that offer no benefits to them. Additionally, the bill enacts a specified time period lapse between the prior loan and refinancing. Other requirements put into place by the measure include: fee recoupment, interest rates, and net tangible benefit tests to aid veterans. These changes apply to VA, RHS, and FHA loans.
Each of these modifications provides further protection for consumers. If you feel your legal rights are being infringed upon, contact the attorneys at Graham Legal, P.A. to speak with our Miami foreclosure attorneys today.