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For information purposes only and not a legal advice.
Homeownership not only supplies families with shelter, it also
provides a way to build wealth and economic security. Unfortunately,
too many American homeowners are losing their homes, as well as
the wealth they spent a lifetime in building, because of harmful home
equity lending practices. Some lenders target elderly and poor or
uneducated borrowers to strip the equity from their homes, which
traps borrowers in bad loans and creates a high risk of foreclosure.
Subprime lending has increased 1,000% in the last five years, and
abusive lending is up commensurately.
Credit History Versus Creditworthiness
Confusion about credit history and creditworthiness inappropriately
reinforces the idea that lower-income, and particularly minority,
communities are largely bad credit risk environments. Several problems
arise from interpreting creditworthiness from existing credit history data
for minority households and comparing data with that for non-Hispanic
white households. First, low-income minorities are more likely to be
financially unsophisticated, and thus may not attempt to correct poor
credit histories before applying for a loan. Two borrowers may have
similar credit behavior, but if one has taken steps to improve his or her
credit records before applying for a loan, that borrower will deemed more
creditworthy. In fact, many households may be completely unaware of the
need to maintain a good credit history, and the role that documentation
plays in determining their access to credit.
A related issue is coaching of borrowers at the time of application of
loans. Proper counseling at the time of the loan application may enable
a household to improve its credit score, but there may be substantial
differences in the ways in which households receive such coaching
along racial and ethnic lines.
Finally, some households may default intentionally because they
recognize, albeit after the fact, that the loan terms they have accepted are
egregious and unfair if not outright fraudulent. In these instances,
financially vulnerable households are penalized with additional credit
blemishes for recognizing and acting to defend themselves from
unscrupulous or fraudulent lenders. The coalition recommends new
legislation that focuses on seven loan terms and practices including: 1.
credit insurance; 2. excessive fees charged to borrowers; 3. prepayment
fees that do not benefit borrower; 4. mortgage brokers abuses including
yield-spread premiums; 5. steering of borrowers to subprime loans on
the basis of race/ethnicity, age, or gender; 6. mandatory arbitration
clauses that restrict the rights of the borrower; and 7. loan flipping or
repeated refinancing that do not benefit the borrower.
Federal Housing Administration is developing tools to help borrowers
who have been victimized by predatory lenders to avoid foreclosure, retain
their homes with reasonable level of debt, and, if necessary, repair their
credit.
Mortgage loan documents can consist of dozens of provisions written in
extremely complex, confusing, and technical legal language. Predatory
lenders target lower-income and minority borrowers with limited
education and vulnerable elderly consumers specifically because they
cannot reasonably review, understand, and challenge specific provisions
in the dozens of legal documents that are routinely involved in the
mortgage lending process is a highly vulnerable expectation.
References: Engel, Kathleen and Patricia McCoy, 2001. The Law and
Economics of Predatory Lending, Presented at the Federal Research
System Conference on Changing Financial Markets and Community
Development. Temkin, Kenneth 2000. Subprime Lending: Current
Trends and Policy Issues. The Neighborworks Journal. Thank you!
Gotomypc.com
Login Administration
Homeownership not only supplies families with shelter, it also
provides a way to build wealth and economic security. Unfortunately,
too many American homeowners are losing their homes, as well as
the wealth they spent a lifetime in building, because of harmful home
equity lending practices. Some lenders target elderly and poor or
uneducated borrowers to strip the equity from their homes, which
traps borrowers in bad loans and creates a high risk of foreclosure.
Subprime lending has increased 1,000% in the last five years, and
abusive lending is up commensurately.
Credit History Versus Creditworthiness
Confusion about credit history and creditworthiness inappropriately
reinforces the idea that lower-income, and particularly minority,
communities are largely bad credit risk environments. Several problems
arise from interpreting creditworthiness from existing credit history data
for minority households and comparing data with that for non-Hispanic
white households. First, low-income minorities are more likely to be
financially unsophisticated, and thus may not attempt to correct poor
credit histories before applying for a loan. Two borrowers may have
similar credit behavior, but if one has taken steps to improve his or her
credit records before applying for a loan, that borrower will deemed more
creditworthy. In fact, many households may be completely unaware of the
need to maintain a good credit history, and the role that documentation
plays in determining their access to credit.
A related issue is coaching of borrowers at the time of application of
loans. Proper counseling at the time of the loan application may enable
a household to improve its credit score, but there may be substantial
differences in the ways in which households receive such coaching
along racial and ethnic lines.
Finally, some households may default intentionally because they
recognize, albeit after the fact, that the loan terms they have accepted are
egregious and unfair if not outright fraudulent. In these instances,
financially vulnerable households are penalized with additional credit
blemishes for recognizing and acting to defend themselves from
unscrupulous or fraudulent lenders. The coalition recommends new
legislation that focuses on seven loan terms and practices including: 1.
credit insurance; 2. excessive fees charged to borrowers; 3. prepayment
fees that do not benefit borrower; 4. mortgage brokers abuses including
yield-spread premiums; 5. steering of borrowers to subprime loans on
the basis of race/ethnicity, age, or gender; 6. mandatory arbitration
clauses that restrict the rights of the borrower; and 7. loan flipping or
repeated refinancing that do not benefit the borrower.
Federal Housing Administration is developing tools to help borrowers
who have been victimized by predatory lenders to avoid foreclosure, retain
their homes with reasonable level of debt, and, if necessary, repair their
credit.
Mortgage loan documents can consist of dozens of provisions written in
extremely complex, confusing, and technical legal language. Predatory
lenders target lower-income and minority borrowers with limited
education and vulnerable elderly consumers specifically because they
cannot reasonably review, understand, and challenge specific provisions
in the dozens of legal documents that are routinely involved in the
mortgage lending process is a highly vulnerable expectation.
References: Engel, Kathleen and Patricia McCoy, 2001. The Law and
Economics of Predatory Lending, Presented at the Federal Research
System Conference on Changing Financial Markets and Community
Development. Temkin, Kenneth 2000. Subprime Lending: Current
Trends and Policy Issues. The Neighborworks Journal. Thank you!
Gotomypc.com
Login Administration
| Mortgage broker originated loans The National Association of Mortgage Brokers reports that as many as two-thirds of mortgage loans are originated by mortgage brokers. Currently there are no national standards for licensing and oversight of mortgage brokers. Some states license mortgage brokerage offices, but not individuals; 24 states have no specific educational or experience requirements for mortgage brokers; and only a few states require criminal background checks on mortgage brokers making it possible for unethical individuals to move from one mortgage brokerage firm to another. Number of report narratives regarding mortgage broker- originated loans that involved suspected loan fraud. Reports of mortgage loan fraud rose significantly in 2003. The Federal Financial Institutions Examination Council reported an increase in the number of mortgage loans beginning in 2003: “The 2003 data include a total of 42 million reported loans and applications, which is an increase of about 33 percent from 2002, primarily due to a significant increase in refinancing activity (approximately 41 percent).” 3 SARs on mortgage loan fraud increased over 92 percent between 2003 and 2004. The increase in filings may be attributed to an increase in overall mortgage lending concurrent with the decline in interest rates in the 2002 – 2005 timeframe and a broader awareness of this fraudulent activity. |
" Forensic mortgage audit " to check if there's
TILA/RESPA/HUD1 violations during the loan
origination process. Inflated income/inflated
asset/inflated appraisal, & more...
TILA/RESPA/HUD1 violations during the loan
origination process. Inflated income/inflated
asset/inflated appraisal, & more...
| Grandfather clause: A portion of statute that provides that the law is not applicable in certain circumstances due to preexisting facts. Such clause might allow an individual who has been in continious practice in particular profession for a specific period. Established in 2005. |
| The Private Approach Request for Foreclosure Mediation California and Nevada where foreclosures are nonjudicial-meaning they never touch the courts but are worked out privately between the parties. |
Authorization and Release must be
notarized prior to submission
notarized prior to submission
| Civil codes:2920-2944.5 (b) A notice of default filed pursuant to Section 2924 shall include declaration from the mortgagee that it has contacted the borrower, tried with due diligence to contact the borrower as required by this Section. (d) A mortgagee's, beneficiary's, or authorized agent's loss mitigation personnel may participate by telephone during any contact required by this Section. Section 2923.5. (A) Options that may be available to borrowers who are unable to afford they mortgage payments and who wish to avoid foreclosure, and instructions to borrowers advising them to take to explore those options. (4) When Lenders determine loan modification solution for borrower under the this Section, the servicer seeks to achieve long-term sustainability for the borrower. This section shall remain in effect only until January 1, 2013, and as of that date is repealed, unless a later enacted Statute, that is enacted before January 1, 2013, deletes or extend the date. Approved lenders since 2005 through Loss Mitigation and Advance Dispute Resolution (Mediation) Wachovia, Wells Fargo, ASC, SPS, Litton Loan, Aurora Loan Servicing, GMAC, Saxon, CitiMortgage, Countrywide, WAMU, Option One, Homecomings Financial, Frist Franklin, American Home Mortgage, First Horizon Home Loans, CHASE, Bank of America, IndyMac, Provident, Sovereign Bank... |
BANKRUPTCY AS YOUR
LAST OPTION TO SAVE
PROPERTY OFF
FORECLOSURE.
Chapter 7 bankruptcy: No
provision in Bankruptcy
code for modifying
mortgage loans.
Can homeowner apply for
loan modification? Yes.
However, it is better to apply
for loan modification before
filing bankruptcy because
you have a better chance of
getting terms in modifying
your loan. Once your filed
for bankruptcy you will need
to pay whatever are the
scheduled monthly
payments on the mortgage
during and after the
bankruptcy proceedings.
Bankruptcy Act of 2009
Section 4. Authority to
modify certain mortgages.
Section 4 amends
bankruptcy code section
1322(b) to permit
modification of certain
mortgages that are secured
by the debtor's principal
residence in specified
respects.
FOR INFORMATION
PURPOSES ONLY AND
NOT A LEGAL ADVICE.
LAST OPTION TO SAVE
PROPERTY OFF
FORECLOSURE.
Chapter 7 bankruptcy: No
provision in Bankruptcy
code for modifying
mortgage loans.
Can homeowner apply for
loan modification? Yes.
However, it is better to apply
for loan modification before
filing bankruptcy because
you have a better chance of
getting terms in modifying
your loan. Once your filed
for bankruptcy you will need
to pay whatever are the
scheduled monthly
payments on the mortgage
during and after the
bankruptcy proceedings.
Bankruptcy Act of 2009
Section 4. Authority to
modify certain mortgages.
Section 4 amends
bankruptcy code section
1322(b) to permit
modification of certain
mortgages that are secured
by the debtor's principal
residence in specified
respects.
FOR INFORMATION
PURPOSES ONLY AND
NOT A LEGAL ADVICE.
HOA must be paid including Property tax
and insurance during negotiation process.
and insurance during negotiation process.