home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Yield Spread Premiums
Yield spread premium issues, studies and lawsuits. Mortgage wholesaler YSPs paid to mortgage brokers.


Wholesale Lenders Lower Max Broker Fees

CitiFinancial, Argent implement fair lending practices

May 20, 2005

By COCO SALAZAR


Two companies have taken steps to ensure broker-originated and direct borrowers are given fair loan terms. Among the changes are lower limits on maximum broker fees.

Argent Mortgage Co. recently announced that it changed and added new features to its Fair Mortgage Lending Practices in an effort to better inform consumers about the mortgage lending process and ensure they pay fair costs for loans.

The Irvine, Calif.-based wholesaler said it set new limits to broker fees, which now may not exceed 5 percent of the loan amount.

"Many brokers are concerned about recent and pending legislation and its potential impact on providing fair fees for the valuable services they offer," said Jeff Gillis, Argent executive vice president of operations, in the prepared statement.

"To that end, we believe that setting higher standards for fair mortgage lending practices is vital to the health of the mortgage lending industry, and will benefit brokers, consumers and the industry at large," Gillis continued. "We hope that other organizations who share our desire to further the cause of fair lending will take similar steps."

To help its brokers better educate consumers, Argent said it created a consumer education resource center, located at www.argentloans.com, which walks borrowers through key questions about homeownership, getting a loan, and key lending laws.

Argent also added a new set of "plain language" disclosures to borrowers' early RESPA disclosure documents and final closing package to help them better understand and verify key pieces of information, and clearly identify estimated and final costs associated with a mortgage loan, the announcement said.

Another organization that has reportedly taken steps to further fair lending is CitiFinancial.

The Citigroup subsidiary -- which previously settled alleged federal lending violations and widespread deceptive and abusive lending practices with the Federal Reserve Board and the Federal Trade Commission -- announced Thursday it has made "significant changes" over the past three years in collaboration with community groups and lawmakers.

Among the changes, the Citigroup subsidiary said it banned the origination of Home Ownership and Equity Protection Act loans, beginning with the branch network. Violations of HOEPA provisions were among the accusations against the lender in the Fed settlement.

CitiFinancial also said it reduced the maximum prepayment penalty to 3% of the loan amount in the first year, 2% in the second, and 1% in the third. Full implementation of the change will be completed the third quarter. The term on prepayment penalties was also lowered, from five years to three years.

Yield spread premiums for wholesales customers were limited to 2%, according to the announcement, and maximum origination points charged on retail-originated loans were changed from five to three points.

The subprime subsidiary also noted it has a program that allows applicants to qualify for a rate comparable to Citigroup's prime channels while remaining with CitiFinancial. Another program rewards customers of lower credit quality, and who consistently make on-time payments, with lower interest rates for the remaining life of their loan.

On its agenda for later this year, CitiFinancial will be eliminating mandatory arbitration provisions on real estate secured loans originated after August 2005.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]


Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.


Predatory Lending News
FTC and HUD settlements. Class action lawsuits. Predatory lending prevention. Archives back to 2001.




Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.




SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders