Kramer & Kaslow: Governing Home Loans & New Legislation

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New legislation may help future homeowners keep the homes they’ve worked so hard to obtain.

Kramer & Kaslow

Attorney Philip Kramer, a partner in the law firm of Kramer & Kaslow, who spends most of his waking time doing battle with banks as he fights to protect wronged homeowners, was heartened by a recent New York Times article which reported that government regulators may actually impose rules on the bank to prevent the kind of speculation that brought on the current housing and mortgage crisis.

According to Kramer, “It’s too late to help the clients I represent, but if these regulations actually go through, perhaps it can help other homeowners in the future so that they never have to experience the kind of foreclosure crisis we’re going through now.”

According to Kramer, the Dodd-Frank act requires that banks hold at least 5% of the mortgage-related securities they sell. The banks are fighting this furiously and claim that it will make it harder for prospective homeowners to get loans. “No one is buying this argument – at least for now,” says Kramer. “Particularly when those same banks are asking their customers to put down as much as 20% if they want a loan.”

Philip Kramer, an astute observer of the mortgage industry scene, feels that homeowners may at last get a fair shake. According to Kramer, “One of the things the new legislation requires is that rules be set that govern the banks and set minimum standards for the servicing of loans. This is something that homeowners desperately need. I see the results of no servicing standards every day as my clients struggle with banks. It’s appalling.”

There are a number of complex issues to be worked out by regulators, including how much risk banks will be allowed to take and how that risk may be pooled, but it seems that for the first time consumers’ interests are going to be included in the mix.

http://www.nytimes.com/2011/03/29/business/29bank.html?_r=1&ref=todayspaper

About Kramer & Kaslow
Kramer & Kaslow is a Professional Law Corporation; our goal is to protect our client's rights and find solutions. We strive to give our clients the professional and personal attention that they deserve. The Law Offices of Kramer & Kaslow specialize in Civil Litigation, Real Estate Law, Franchise Law, Entertainment Law, Estate Planning, Corporate Business Transactions, Trademarks, Copyrights, and International Law. For more information call (818) 224-3900 or visit http://kramer-kaslow.com.

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