State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how?
In the midst of a weakened global economy cause largely by an avoidable housing crisis, financial regulations inevitably have an impact on us all. Decisions made by agencies such as the Department of Treasury, Federal Reserve, Bureau of Consumer Financial Protection, and the Federal Housing Finance Agency have the power to directly impact our daily lives much more than other agencies which is essentially the reason for my interest in such a regulation.
Also, as a young American looking to own a home in the near future, this regulation has the ability to impact my ability to obtain financing. Beyond merely being a part of the American dream, home buying and the housing market is an essential part of every society’s economy.
Describe the proposal/change.
Nearly 4 decades after being established the Trust in Lending Act (TILA) also commonly referred to as regulation Z has undergone a number of amendments. The most current changes are to make the guidelines in which a consumer secures credit for the purchase of a home stricter. The change comes as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act which was signed into law on July 21, 2010. The act provides strict guidelines to creditors extending credit to consumers of high risk for the purpose of purchasing a home. Two essential changes provided state, prior to approval of such credit, the creditor must ensure that the consumer (1) obtains a written appraisal performed only by a certified or licensed appraiser (2) if the buyer is purchasing a previously mortgaged property at a price lower than the current sale price, an additional appraisal must be…...