A new set of regulations coming into effect Monday will make it harder for banks to lend to homeowners.
Under the rules, banks must report the amount of the secured loan they hold in their checking accounts, the interest rate they pay on the loans and the interest they charge on the mortgage principal.
They also must disclose the total amount they are required to pay on any loan that is not securitized.
The regulations are part of a broader effort to tighten lending rules as a result of the financial crisis, but the regulations won’t affect the $10 billion loan amortisation calculator that is a central tool for lenders.
That tool, designed to help consumers figure out the worth of a loan, has been widely used by the financial industry to help customers make good decisions about their mortgages.
But now, under the new rules, the calculator will be updated to include information that the Department of Housing and Urban Development says is not included in the old version of the calculator.
That information will be more detailed and include a more accurate calculation of how much of the loan would be securitizable.
The new calculator will only be available for the first time Monday.
It’s unclear if the new information will change the calculator’s calculations.
It is unclear how long the updated calculator will remain in place.