Promissory estoppel: a tip inside the English and you can Western law that produces a vow lawfully enforceable in the event your person that gets the pledge hinges on they and you can endures problems consequently; the brand new rule inhibits promisers out-of the past to their word as opposed to courtroom accountability. Find Mark Lawson interviews.
A home Settlement Actions Work (RESPA): A great 1974 law intended to include people throughout the a house techniques. Lower than that it work, loan providers and you will lenders should provide consumers that have disclosures regarding actual home payment therefore the can cost you and you can conditions in it. The fresh new shortcomings from both RESPA together with Truth in Financing Operate turned into obvious regarding wake of 2008 Financial crisis; recommendations of these regulations formed of several provisions off Dodd-Honest this present year.
Refinance: Replacement a current obligations responsibility (real estate loan) which have an alternative loans obligations (mortgage) under other conditions. Fundamentally, refinancing takes place during the episodes having decreasing interest levels, enabling consumers to receive alot more positive financial words. In advance of 2008, people capitalized on the low interest so you’re able to re-finance their homes. not, of several refinanced with the riskier financing with more opaque words, usually on account of predatory marketing methods.
Reverse redlining: The technique of centering on neighborhoods, most of which try non-white, for the true purpose of selling abusive or predatory mortgage loans, specifically so you can established people. (more…)