The federal reserve is proposing new rules that will allow home buyers to cancel their mortgage loan within three business days. Additionally, it will require that all fees paid, except for credit checking fees, to be refunded. It also appears that it will allow the borrowers to make multiple applications and then cancel all but one.
The article about these proposals appears to reach the conclusion that this will be somewhat benign and have little impact upon borrowers and lenders, but, I am not sure. Will there be a ripple effect upon finance contingencies in a home purchase? Will it encourage buyer's remorse during any due diligence period?
I am very leary of any new regulations that hit the markets, whether housing or otherwise. They often have more unintended consequences than benefits. Does anyone remember HVCC?
What do you think. Will this be benign? Will if be positive? Will these have a negative effect on a housing market that is already on life support?