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Benjamin L. Cardin
FHA to ban lenders from charging extra interest payments on mortgages
FHA to ban lenders from charging extra interest payments on mortgages

Hundreds of thousands of home sellers have had their pockets picked at closings during the last decade: They've been charged interest on their mortgages after their principal debts had been fully paid off. This practice, endorsed by a federal agency, cost consumers staggering amounts, with estimates ranging into the hundreds of millions of dollars a year during periods when mortgage rates were high. But thanks to a policy switch that was recently made final, charging extra interest payments on loans insured by the Federal Housing Administration will soon be banned. The FHA, which traditionally has served as a major source of financing for moderate-income first-time buyers, many of...

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