Lender Suggests More Disclosures
Pharmacies detail the list of side effects when they fill prescriptions, so why shouldn't lenders list the negative aspects of various loan products?
That was John Robbins' thought when he picked up his high blood pressure medication recently. And now the next president of the Mortgage Bankers Association is forming a special task force to look into the benefits of a simple, easy-to-understand tool that spells out the strengths and weakness of the loan the borrower has chosen.
"I see it as final gut-check for the borrower," Mr. Robbins said at the MBA National Secondary Market Conference here last week. "Here's what you've chosen. These are all the risks and these are the possible rewards."
Currently the MBA's chairman-elect, Mr. Robbins is calling on Fannie Mae, Freddie Mac and the MBA's Residential Board of Governors (RES-BOG) to develop recommendations for an industrywide disclosure document, and when and how best to deliver the document to borrowers.
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