Article: Mortgage Bankers Association of America
www.Stop Mortage Fraud.com / (800) 348-3931
borrower’s bill of rights:
* a borrower had the right to clear and forthright explanation of the terms and conditions of the loan.
* a borrower has the right to timely and truthful disclosures regarding the rates and costs of the loan.
* a borrower has the right to accurate disclosure of final annual percentage rate and amounts of regular payments at the time of loan closing settlements
* a borrower has the right not to be subject to deceptive marketing tactics.
* a borrower has the right to obtain credit counseling prior to closing on the loan.
* a borrower has the right to have a lender consider a borrower’s ability to repay the loan before such credit is extended.
* a borrower should receive a tangible benefit when charged a fee or a higher interest rate to refinance a loan.
* a borrower has the right to not be subject to a requirement that he or she finance any portion of points or fees.
* a borrower has the right to have favorable information reported to credit bureaus on a timely basis.
The ten warning Signs of Predatory Lending :
1. balloon loan /will you need to obtain another loan to finance that final lump sum amount?
2. required to buy credit insurance
3. refinanced several times and in each instance increased your monthly payments or amount you owe on your home?
4. after settlement surprised to find that the monthly payments on mortgage were higher than your anticipated based on the intital disclosure
5. did you incur any unexpected costs at settlement that were not explained to you prior to the settlement?
6.were you asked to leave signature lines or any other important lines item of any form blank? did the lender or broker alter any information you entered on your loan application?
7. Check your loan file. Are any of the following disclosures missing?
a. good faith estimate
b. special information booklet
c. Truth in Lending
HUD-1 settlement statement
8. Do your documents reveal that your interest rate calculation will change to require you to pay “daily interest ” in instances when your payments are late?
9. Is the loan amount on the loan you obtained higher than the value of the home?
10. Were you encouraged to include false information on your loan application?
Where to Report suspected Predatory Lending:
Federal Contacts: Contact information:
Agency: Federal Trade Commission ( FTC)
Financial Services Division
6th Street & Pennsylvania Avenue NW
Washington DC 205580
Department of Housing & Urban Development (HUD)
Director Interstate Land Sales /Respa Division
Officer of Consumer and Regulatory Affairs
Us Department of Housing and Urban Development
451 7th Street SW Room 9146
Washington DC 20410
Federal Reserve Board (FR:
Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
20th And C Streets NW Stop 801
Washington DC 20551