If the home you’re buying is considered a “flip" and you’re getting a higher-priced mortgage loan covered under new mortgage rules, you will have to get a second appraisal. None A “flip” is when: You buy a home from a ...
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My mortgage lender told me it was exempt from the ability-to-repay mortgage rule. Is this true?
It could be. A few special types of lenders are exempt from the ability-to-repay rule. Lenders and programs that may not have to follow the ability-to-repay rules are: Community Development Financial Institutions. These groups are certified by the ...
What is a debt-to-income ratio?
Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. Different loan ...
A Qualified Mortgage is a category of loans that have certain, less risky features that help make it more likely that you’ll be able to afford your loan. None A lender must make a good-faith effort to determine that you ...
What is the ability-to-repay rule? Why is it important to me?
The ability-to-repay rule is the reasonable and good faith determination most mortgage lenders are required to make that you are able to pay back the loan. None Under the rule, lenders must generally find out, consider, and document a borrower’s ...
Could I be arrested if I don’t pay back my payday loan?
No, you cannot be arrested for defaulting on a payday loan. However, if you are sued or a court judgment has been entered against you and you ignore a court order to appear, a judge may issue a warrant for ...
What is credit insurance for an auto loan?
Credit insurance is optional insurance that is designed to make payments to your lender if you die, lose your job, or become disabled. This insurance is optional. When you are financing a vehicle, you might be offered credit insurance too. ...
Risk-based pricing is when a lender offers you less favorable loan terms, such as a higher interest rate. The lender decides this based on information in your credit report or application. Lenders often charge higher interest rates to people they ...
What should I do if I think an auto dealer or lender is breaking the law?
You have the right to submit a complaint about a problem with an auto lender or dealer that you are not able to resolve. First, try to work with the company. Companies can usually answer questions unique to your situation ...
My lender or broker said that my spouse had to co-sign my mortgage loan. Is this right?
In general, a creditor such as a lender or broker cannot require your spouse’s (or another person’s) signature for individual credit if you qualify on your own for the amount and terms requested. If you are applying for joint credit, ...
A creditor such as a lender or broker may ask about the number and ages of your dependents. A lender or broker may also ask about dependent-related financial obligations or expenses. None However, a lender or broker may do so ...
Yes, if the payments are likely to be consistently made. None A creditor such as a lender or broker can consider the amount of such income and likelihood that it will continue, as with all other forms of income. In ...
In general, only if you want the creditor to consider such payments as part of your application for credit. None A lender or broker may ask whether income stated in your application comes from alimony, child support, or separate maintenance ...
If you are applying for individual credit in your own name, a creditor such as a lender or broker may not deny you credit because of your marital status. If you are creditworthy, you may get your own mortgage or ...
A creditor such as a lender or broker cannot discriminate on the basis of sex (including sexual orientation and gender identity) or marital status. With respect to most mortgage transactions, a lender or broker may ask for your sex, but ...
My lender or servicer said I could go on a repayment plan. What does that mean?
A repayment plan is a structured way to make up your missed mortgage loan payments over a period of time. If you are behind on your mortgage payments, your lender or servicer may allow you to enter into a repayment ...
If you are in default, and the servicer has notified you that the entire balance is due (in other words, the loan has been “accelerated”), your lender generally can require you to pay the full past due amount to make ...
How much money can I get with a reverse mortgage loan, and what are my payment options?
How much you can borrow depends on your age, the interest rate you get on your loan, and the value of your home. You have three main options for receiving your money: through a line of credit, monthly payout, or ...
What is a Qualified Written Request (QWR)?
A Qualified Written Request, or QWR, is written correspondence that you or someone acting on your behalf can send to your mortgage servicer. Instead of a QWR, you can also send your servicer a Notice of Error or a Request ...
After I have paid off my mortgage, how do I check if my lien was released?
State property records will show whether your lien is released. None You can find information on property records by contacting your local Secretary of State or county recorder of deeds. After you pay off your mortgage, your lender should also ...
What happens if my mortgage is sold? Is my loan safe?
If your loan is sold, then your lender must provide you with a loan ownership transfer notice. None Just because your loan is sold does not mean that your servicing right is sold and that you will get a new ...
Do I have the right to receive a copy of my home appraisal?
Yes. You have the right to receive a free copy of your home appraisal for a first-lien mortgage. None For first lien and certain higher-priced mortgage loan applications, mortgage lenders are required to provide you with a free copy of ...
First, ask your lender for a specific reason why your rate or fees have changed. None The mortgage closing costs may be different if something important changed or wasn’t included in your Loan Estimate. It’s also possible that your income ...
What do I do if the terms of my mortgage loan at closing are not what I was promised beforehand?
Don't sign the closing documents if the loan is not what you were promised. You don’t have to sign anything at closing unless you are satisfied with the terms. The lender owes you an explanation of why the terms have ...
I applied for a mortgage loan and my lender denied my application. What can I do?
You should request an explanation from your lender as to why your application was denied. The lender is required to provide you this explanation in writing if you request it, and must to give you copies of the credit score ...