Mgmt 520 Week 2 Assignment

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1. Administrative Agency
a. Bureau of Consumer Financial Protection
i. Currently I am in the process of improving my credit to purchase a home. In the past I have been misinformed and mislead by lendors thus adversely affecting my credit. If proposal is adopted, more information about the terms and condition of a loan will be required prior to a contractual agreement.

2. Proposal Description
b. The Bureau of Consumer Financial Protection (Bureau) is proposing to amend Regulation Z, which implements the Truth in Lending Act (TILA). That final rule implements sections 1411, 1412, and 1414 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which creates new TILA section 129C. Among other things, the Dodd-Frank Act requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for ‘‘qualified mortgages.’’ The Bureau is proposing certain amendments to the final rule implementing these requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs and an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors.

3. Public Comment
c. Many creditors are currently taking advantage of vulnerable consumers in financial crises by offering credit with extremely high interest rates and additional upfront costs. As a potential first time homebuyer there are many things that need to be made clear prior to selecting a loan. With little knowledge, as much information as possible will be beneficial to ensuring that my loan options are within a reasonable mean to repay. Many consumers find themselves swarming in debt simply because they were misinformed...
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