Settlement Proposal Would Help Buyers: Aid for Home Buyers Proposed
I The Federal Reserve System, which governs the nationÛªs lending Institutions, plans to amend truth-in-lend-ing regulations to force mortgage bankers to disclose all finance charges at least 10 days j before home buyers reach the settlement table.</br></br>The proposed ruling recognizes, for the first time, the home buyerÛªs legal right to be informed of all finance i charges before settlement soj he will be able to shop for the! best mortgage terms available.</br></br>If approved by the full Federal Reserve Board, the proposed amendment would mark the first time that the Truth in Lending Act, passed by Congress in 1969, will have been applied to the timing of mortgage finance charge disclosures.</br></br>According to one mortgage industry official, the ruling could change the whole pattern of home buying by stimulating comparison shopping for mortgage terms.</br></br>Virtually without exception, mortgage banks in Washington and elsewhere traditionally wait until settlement time before producing the required statement of disclosure, listing the credit fees and other levies assessed to the home buyer.