Posted on Wednesday, March 3, 2010
Here's an interesting dual standard. Washington spent the last two years revising the Real Estate Settlement Procedure Act to, among other things, require mortgage brokers and title companies/closing agents, to disclose some additional information, but mostly disclose the same old stuff differently, in order for borrowers to (theoretically) better understand the costs and terms of the mortgage loan they are getting.
Yet millions are applying for mortgage modifications with little idea of what the important terms of their newly modified loan will be; few know they will be required to escrow for taxes and insurance, their interest rate will go up again after up to 5 years, and they may have a significabnt balloon payment due if they sell ore refinance or when they eventually pay off their loan.
The bottom line? How about some more education about the government programs in terms people understand.