Site Map Home

Watch Out For Mortgage Lending Overcharges

According to U.S. Government statistics, homeowners are being overcharged billions of dollars each year due to lender miscalculations!

In November 2002 the Los Angeles Superior Court, alleged a "pervasive pattern of abusive lending practices" including routinely imposing $75 administrative fees on loans of $2,500 or less. The maximum permitted by state law is $50.

One lending corporation acknowledged that overcharges occurred but denied any intentional wrongdoing. The settlement requires the company to pay Arthur Andersen to regularly audit its California operations; to create a special office where regulators can review electronic images of loan files, and to establish "technological and human controls" to prevent overcharges.

The U.S. Government estimates mortgage overcharges are running $60 Billion! Most home owners are completely unaware, never review their accounts, and assume their lenders are faultless.

Overcharges occur in an estimated 47.5% of all Adjustable Rate Mortgages (ARMs) and, again, have already cost Americans over $60 billion. Such errors are made by banks and lenders when servicing or adjusting mortgages.

This is further substantiated by lender audits conducted by the F. S. L. I. C. and verified by the General Accounting Office, with almost 50% of ARMs containing errors reflecting overcharges

Consumers should take preventative measures to assure they are not being overcharged. Such measures include:

1. Obtain a Good Faith Estimate and review it with a legal representative.

2. Watch out for teaser rates! These are extremely low rates designed to get your business but are often so unrealistically low rates the lender/broker will have no intention of applying it to your loan.

3. Require that the closing rate and fees be disclosed before signing anything.

4. If you have a personal c.p.a. or legal consultant get them involved in the lending process.

5. To detect miscalculations use an amortization schedule software program that lists proper charges including insurance and taxes.

6. Get an annual detailed mortgage audit. Mortgage audits can be done by a C.P.A. or an accounting firm.

How To Shop Low Mortgage Rates

Save up to $800 per month and tens of thousands of dollars lowering your mortgage rates and refinancing your home.

Home equity loan and home loan refinance tips to reduce monthly payments, lower mortgage rates, get cash back and save thousands in loan costs. What could you do with an extra $3000 to $4000 per year. Home refinancing makes big savings possible.

Now refinancing your home loan has never been easier. Home equity refinancing can save you hundreds of dollars per month. Many have saved as much as $800 per month. Even a $200 savings can add up to significant savings over several months.

The Home Loan Page

Home Mortgage Refinancing and Loans & Real Estate Links

Looking for more information regarding home owner refinancing and finding the lowest refinance rates? Go to www.RefinanceLoanRates.fimark.net and find all you need to know about using the online loan marketplace for competitively low home refinance rates and great deals on home loan refinancing all in one place.

Home Loan Articles

First Time-Homebuyer Programs Mortgage Closing Costs Fees Finding Low Interest Refinancing Programs Home Purchase Loans About Debt Consolidation Loans
Home Equity Loan Advantage

Mortgage Loan Search Financial Network is a division of
Financial Marketing Network, Inc.
926 Cator Avenue
Baltimore MD 21218

© 2001, 2002, 2003, 2004, 2005, 2006, 2007 Financial Marketing Network, Inc. All rights reserved.