Home Equity Lenders Adopt HIL Standards

The National Home Equity Mortgage Association has adopted voluntary standards aimed at deterring home improvement abuses.The standards call for disclosure of customer rights under federal law, the signing of completion certificates by contractors and homeowners before lenders buy financing, independent property inspections to confirm that home improvements of $7,500 or more have been completed, lender cooperation with law enforcement in prosecuting fraud, and lender response within 60 days of consumer home improvement complaints. "We plan to take a hard line with contractors who violate the homeowner's trust," said Laura Borrelli, president of NHEMA. "These standards are the first step toward a more comprehensive set of voluntary and legislative reforms NHEMA is pursuing to protect homeowners."