Eddy's Blog

Regulation Z - The Big 9!!!!!The first four disclosures must include simple descriptive phrases of explanation similar to what is written besides them. 1) Amount Financed - The amount of credit (principal amount borrowed less prepaid finance charges includeable) provided to you2) Finance Charge -...

Disclosure Statement (Continued)The annual percentage rate (APR) is the relative cost of credit expressed as a yearly percentage rate. It is defined as the relationship of the total finance charge to the total amount financed, expressed as a percentage. In general , the lender nor anyone else may...

Regulation ZTo accomplish the objectives of the truth in lending act (TILA) , the board of governors of the federal reserve system issued a directive known as Regulation Z (Reg Z). A creditor must always furnish certain disclosures to the consumer before a contract for a loan is made. A creditor ...

The Consumer Credit Protection Act is the legislation that launched truth in lending disclosures. This was a landmark legislation. For the first time . creditors had to state the cost of borrowing in a common language so that the consumer could figure out what the charges are, compete the costs o...

Credit protections have mulitplied rapidly in the past few decades. The concepts of "fair" and "equal" credit have been written into laws that prohibit unfair discrimination in credit transactions, require that consumers be told the reason when and why credit is denied, let borrowers find out abo...

 The standard mortgage application used in california and most other states is known as the Uniform Residential Loan Application. We call it the 1003 for short due to that being the acutal form number. For any loan to be underwritten or approved this must be provided. In the closing documents a c...

In general the mortgage industry uses electronic underwriting systems that predict multiple risk factors in a loan application. I would say approximatley 98% of mortgage companies use some form of automated underwriting with about 60% using either Fannie Mae`s desktop underwriter or Freddie Mac`s...

Thanksgiving is a time to be with family. Its a time to enjoy turkey along with the football games and various other sports. But do you really sit down and consider what you are thankful? What do you take for granted. Some of us are more fortunate than others. Humility is the key..........What am...

Having been in the business over 6 years and have seen many Loan Officers aka LOs come and go. In the past 6 months or so i have seen more and more mortgage companies and as a result more LOs come to fruition. They all claim to offer the best rates , loan programs , they work with 45,000 banks an...

Under the Fair Credit Reporting Act , a person who has been denied credit, housing or employment may receive a free copy of his or her credit report by contracting one of the credit reporting agencies directly. Qualifying the PropertyThe lenders first line of defense in getting repaid on the loan...