"Extending credit to clients in the underserved market requires a heightened sense of dual responsibility – and that begins with more effective borrower education through resources such as MyLoanDetail™," said Carrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau. "As the industry does more to help potential borrowers understand how the lending process works and their specific responsibilities, lenders' ability to meet the needs of a larger population and originate more loans to more customers will improve."
MyLoanDetail features a short explanation of the mortgage process and confirmation of the borrowers' understanding of their specific loan. The program includes key mortgage concepts and terminology, an introduction to the professionals involved in the process and their roles, as well as a review of the borrower's loan details and payment information. Borrowers are asked to confirm the accuracy of information provided in their loan application and are given an opportunity to provide additional information that may be important in processing the application and verifying their ability to repay.
"The month kicks off National Financial Literacy Month, a national month-long initiative to help consumers take increased responsibility for their personal finances," added Brousseau. "We recognize the value of this initiative and the significant financial undertaking involved in owning a home. We are delighted to help borrowers better understand their financial commitment for the duration of their loan."
MyLoanDetail also addresses transaction costs, down payment amount, mortgage loan principal amount, term of the loan, interest rate and monthly loan payment, as well as what happens in the case of missed or late payments. A review of the borrower's current annual and monthly income is provided, as well as the expected monthly mortgage loan payment amount. Mortgage payment options are outlined, along with budgeting details including non-housing related living expenses and other monthly debt payments, according to Carrington.
Santa Ana, California-based Carrington Mortgage Services has launched an online loan review resource aimed at providing borrowers with a better understanding of their obligations under their mortgage application and contract. Advocates of improving borrower education, Carrington said nearly 10,000 borrowers have successfully utilized the patent-pending MyLoanDetail™ process in beta trials and the company now requires all borrowers to complete the program prior to their loan funding.