Last week, the federal government capped a slew of announcements about new mortgage rules aimed at protecting borrowers with another announcement of more rules designed to protect borrowers.  The Consumer Financial Protection Bureau, in one rule unveiled on Friday, barred lenders from paying brokers and loan officers based on the terms of the loan they sell – such as by steering customers into loans with higher interest rates, fatter fees or prepayment penalties. And, the bank or lender originating the loan can’t get paid more for selling related products, like title insurance, from affiliated companies.  “These rules recognize that people tend to do what they get paid to do,” said Richard Cordray, the agency’s director, in prepared remarks. “By removing financial incentives for originators to push borrowers towards risky loans, we are ensuring that the mortgage market will be more stable and sustainable, and consumers will be better protected.”  Some other protections that had been under consideration, however, are still under review. They include a rule, proposed by the bureau in August, that would require lenders to also offer a loan with no upfront origination charges, when they offer a loan that does include upfront charges. That provision, Mr. Cordray said, would wait for further study after the other new rules take effect, to see if it is necessary.  Also on Friday, the agency made it clear that borrowers were entitled to receive a free copy of the appraisal on which their loan was based, before the loan is finalized. That way, borrowers can see the value placed on the property that is securing the mortgage.  Have you ever had a problem obtaining a copy of an appraisal when applying for a loan?
New mortgage protections aim to prevent lenders from steering borrowers toward risky loans and require lenders to provide free copies of appraisals.