On The Money Latest Home & Real Estate Posts
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CitiMortgage CEO Sanjiv Das announced to On the Money on Monday an extensive new homeowner’s assistance program aimed to keep people in their homes by working with them to modify their mortgages. But that wasn’t all.
Steve Preston, secretary of Housing and Urban Development, joined Carmen on Tuesday’s show to unveil a brand-new campaign by HUD to educate consumers about mortgage loans. The disclosure program, Preston said, is an effort to increase transparency about the mortgage process to borrowers who might feel overwhelmed or confused by the terms of their loan.
A new rule will require both lenders and brokers to provide all relevant information to buyers when they come into the purchasing process, Preston said. Now, when you get a quote it will come with a statement that clearly explains the monthly payments, if they can increase and by how much, as well as a clear listing of the settlement charges. Borrowers can then take that information and shop around with other lenders to see if they can get a better deal. Preston predicts the average consumer will save $700 in closing costs under this new rule.
HUD is working actively to get lenders and brokers to adopt the plan quickly, Preston said, although the industry has up to a year to adopt it.
The expectation is to put the power back in the hands of the consumer, he said.
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