Borrowers Facing Problems With The Mortgage Industry

Borrowers Facing Problems With The Mortgage Industry

Borrowers facing problems with the​ Mortgage Industry
Mortgage industry is​ playing an​ important role today to​ meet the​ people's needs .​
The industry is​ constantly engaged in​ making changes and bringing new ways to​ assist people in​ some of​ their most important personal and financial decisions .​
The industry is​ involved in​ making changes to​ suit people's requirements keeping in​ mind their financial conditions .​
Along with conventional fixed rate products mixtures of​ typical adjustable rate mortgage products,​ interest-only and payment option type ARMs,​ high LTV financing and FHA products have been introduced .​
This expansion and variety in​ the​ products is​ intended to​ help larger number of​ people to​ qualify for the​ home ownership .​
There is​ a​ fair competition among the​ lenders to​ provide customers with the​ best rates staying within the​ boundaries of​ State law .​
Customer satisfaction is​ paid maximum importance today .​
This trend has helped the​ borrowers belonging to​ all levels as​ the​ positive affect is​ now reaching people on​ a​ wider range .​
People have got the​ opportunity to​ take advantage of​ a​ wide range of​ products available in​ the​ current market .​
This has raised the​ buying process with a​ greater mass being able to​ participate in​ the​ program .​
But with this positive feature there has been a​ recent trend of​ increase in​ the​ number of​ fraud cases in​ the​ industry which is​ a​ growing problem in​ the​ industry today .​

According to​ the​ National Mortgage Complaint Center,​ the​ number of​ fraud cases in​ the​ mortgage has increased over the​ recent years .​
Mortgage companies have been using false documents and getting them signed by borrowers .​
Many of​ them have even charged high interest rates and borrowers have been making such high interest payments due to​ lack of​ awareness on​ recent market trends .​

It is​ found out that an​ average homeowner in​ the​ United States has to​ pay $1250 more in​ sub-prime mortgage industry .​
Sub-rime mortgage are offered to​ high risk borrowers who may have been rejected by other lenders .​
In recent years this industry has seen a​ considerable growth with a​ lot of​ consumers getting qualified for this loan .​
Consumers who face difficulty with the​ credit market are generally availing this loan .​
But,​ this growth has simultaneously given rise to​ predatory lending affecting the​ most vulnerable lenders .​
This kind of​ abusive lending is​ generally directed to​ the​ lower income and minority borrowers .​
Generally the​ elderly homeowners with reduced incomes become the​ target of​ these sub-prime home equity lenders as​ they often have considerable amount of​ equity in​ their homes .​
The most harmful practice begins with a​ loan based on​ the​ home equity rather than on​ borrower's ability to​ repay .​
These borrowers often fail to​ repay and the​ lenders acquire the​ borrower's home equity and ultimately the​ borrower loses his home through foreclosure or​ by signing a​ deed to​ the​ lender in​ lieu of​ the​ foreclosure .​
There are some other kind of​ abusive practices which are illegal under various federal or​ state laws.
Considering the​ growing rate of​ predatory lending in​ the​ mortgage industry,​ the​ National Mortgage Complaint Center has decided to​ have an​ audit service for protecting homeowners from abusive lending practices .​
But borrowers should also be aware of​ such unlawful activities and keep themselves away from such lenders .​
Borrowers should consider some preventive measures to​ protect themselves from predatory lenders .​
They should not go by the​ rates that lenders often advertise .​
These rates are in​ fact,​ much lower than the​ actual fees charged by such lenders .​
The lenders advertise such low rates just to​ lure consumers so that they can approach them for loans .​
Borrowers should demand a​ written copy of​ the​ fees that they keep paying to​ the​ lender on​ a​ monthly basis .​
This is​ because lenders often provide an​ estimate of​ fees at​ closing and later they charge higher fees pretending that they have forgotten to​ include these charges .​
But keeping the​ proofs of​ such documents will help borrowers in​ case of​ any discrepancies in​ the​ mortgage process.

If there is​ a​ rise in​ rate in​ the​ market during the​ time period between the​ application and closing,​ the​ lenders charge higher rate to​ borrowers .​
On the​ other hand if​ the​ rate falls downwards,​ the​ lenders try to​ ignore it​ and the​ borrowers are deprived of​ the​ advantage of​ the​ lower rate .​
So,​ the​ borrowers should monitor the​ market during this period.
The borrowers should try to​ keep a​ track of​ all the​ documents involved during the​ process and ask for proper clarifications wherever they have a​ doubt .​
Going this way will minimize the​ problems of​ being cheated by the​ mortgage companies to​ some extent .​
The borrowers should try to​ consult an​ Attorney or​ a​ professional known to​ the​ borrower and get the​ documents verified by them.

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