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CED-81-53 1 (1981-07-02)

handle is hein.gao/gaobabcfo0001 and id is 1 raw text is: 


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BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES


New Mortgages For Financing Homes

Need Uniform And Comprehensive

Consumer Safeguards


Federal financial regulatory agencies have au-
thorized new mortgage instruments for single-
family homes which have inconsistent con-
sumer safeguards. Consumers are not assured
of receiving adequate information for making
decisions in selecting the mortgage which best
meets their needs. Also, mortgage lenders are
deprived of funds because they are unable to
sell such mortgages to investors that purchase
mortgages.

GAO believes a need exists for closer coop-
eration among regulators to develop and ad-
minister uniform safeguards for the various
alternative mortgages. Regulators should offer
the choice of a standard mortgage, provide
adequate disclosure information to the home
buyer on monthly payments and estimated
total costs of the mortgage, study the interest
rate adjustment provisions, and determine
whether regulations should be revised to allow
consumers more options in selecting the best
mortgage maturity date terms for their needs.






0


115927


  CED-81-53
JULY 2, 1981


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