Loan Modifcation Basis: Loan Modification and Preditory Lending Information
Attorney Malik Ahmad : Las Vegas
Law Office of Malik Ahmad is very well versed in federal laws governing mortgages, securities and other contract along with the real estate laws practiced in Nevada. The United States federal government has plenty of laws dealing with the fair administration of lending, enforcement, documents and distribution including the truth in all kinds of disclosures. Your lenders, your brokers, appraisers, real estate agents, and every person in that category has to has license, and a fiduciary responsibility toward you and your home. Those rules, regulations and procedures are spelled out:
1. in the Real Estate Settlement Procedures Act (RESPA), the Truth In Lending Act (TILA), Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA).
Real Estate Settlement Procedures Act (RESPA)
The Real Estate Settlement Procedures Act (RESPA) requires lenders to give a "good faith estimate" of all closing costs you are likely to pay. The idea is to keep the borrower from being forced to pay "hidden" fees at closing.
RESPA also requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.
Truth In Lending Act (TILA)
The Truth In Lending Act (TILA) also known as Regulation Z, requires that annual percentage rate (APR), term of the loan and total costs must be disclosed to a borrower prior to extending credit to the borrower. This information must be conspicuous on documents presented to the consumer before signing, and also possibly on periodic billing statements.
Equal Credit Opportunity Act (ECOA)
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on race, creed, religion, national origin, sex, marital status or age. It also ensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it: Factors such as income, expenses, debt, and credit history are considerations for creditworthiness.
The law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law.
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness and privacy of information in the files of consumer reporting agencies. When you apply for a mortgage, the lender pulls a credit report. The FCRA guarantees you will have access to that report.
More United States Government Online Resources
Fair Housing and Equal Opportunity (FHEO)
FTC - Mortgage Servicers: Their Responsibilities to You
How to Avoid Foreclosure (HUD)
HUD Approved Housing Counseling Agencies
List of Credit Counseling Agencies Approved
Common Mortgage Violations
Constructive Fraud
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?
Fraud and Negligent Misrepresentation
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else contradict the terms of the documents? When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
Excessive Fees
We look for Excessive Fees and Improper Charges by your Lender. We also look for Deceptive Abusive Predatory Lending Practices, Excessive Prepayment Penalties, Tangible Benefits to the Borrower, Affordability to the Borrower, Home Mortgage Disclosure Act (HMDA) Data, Broker Fee Agreements, and State and Federal Disclosure Accuracy.
Breach of Contract
All the mortgage documents and attachments are a contract. The lender must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow? There are swift penalties for a breach of contract. Furthermore, Nevada laws is very strict if someone cheats a senior citizens in any of the lending practices.
Please Call us for a Free Loan Modification Consultation at (702) 270-9100
