Being in the Know with the Consumer Financial Protection Bureau

Maybe you have heard of them, maybe not. One thing is for sure though, the Consumer Financial Protection Bureau (CFPB) is here not only helping you, but they are also looking out for your best interest.

The CFPB is basically the new sheriff in town and looking at what it is they do and can do for you. This sheriff is a real force to be reckoned with.

The CFPB was created essentially to not only address the failures of consumer protection through creating a new financial agency that will focus directly on consumers, but it was also intended to take that process away from the banks.

This bureau will operate under the Federal Reserve and serves the purpose of helping the consumer in a variety of useful ways, including.

·         The bureau is very much comparable to a cop in terms of rule making and enforcement. They make the rules that mortgage companies must abide by and they then go out of their way to be sure those rules are being followed.

·         With the new rules and actual enforcement in play, the CFPB has and is effectively cracking down on shady operations. This is essentially protecting you, the consumer, from being taken advantage of by a mortgage company.

·         They have a call center for complaints that is pretty self-explanatory .But for those of you who need it, think of calling Dell tech support but for consumer support on things related to purchasing a mortgage.

·         In terms of promoting financial education, the CFPB wants to keep you in the know on the ever changing rules of the ball game that is mortgage brokering.

·         They research consumer behavior so that the CFPB can better help the consumer in terms of offering effective advice as well as protecting them.

·         They also monitor financial markets and are on the lookout for possible problems that could arise for you, the consumer.

·         As one final act as sheriff, the CFPB enforces anti-discrimination laws to better help everyone into the house of their dreams.

Here to Help

The list above covers the general purpose of the CFPB. The CFPB has essentially been brought into play for the sole purpose of enforcing the law upon those companies that seem to not value a single shred of integrity and that have no moral high ground.

At Indigo Mortgage, we think differently and are glad that such an agency has come on the scene to enforce good behavior in the mortgage and credit industries. We have always believed in integrity and we welcome the CFPB and its process for protecting the consumer with open arms.

Posted by Indigo Mortgage at 4:48 PM 1 comment:

 

Indigo Mortgage: Striving to Make Home Buying Easier

Just last week, we posted a guide of sorts to loan terms. We felt that, by shedding some light on the more common mortgage loan terms, we could help lessen the stress of the home buying process.

In an effort to further alleviate the stress and chaos that surrounds the homebuyer during this time, we have decided to share a number of very resourceful links for all things related to purchasing your new dream home.

Of course, all of these links are currently up and readily available on our website, but we feel that we could help you further by giving you an idea about what each site is as well as a direct link from this blog.

So, without further ado, Indigo Mortgage presents to you a handful of useful links and descriptions of their websites that are intended to educate you about the home buying process and help you make the best decisions possible with your mortgage loan.

Home Buying and Mortgage Loan Links

Be sure to check out these links to sites that offer advice, information, and tips about mortgages, refinancing, and home buying and home selling:

• For VA Loan information, check these guys out here. The Veterans Affairs is a great place for our servicemen, women, and families to receive help and some extra benefits for their service.
• Need to know if that dream home with the picket fence you got your eyes on is a Fannie Mae? Well, we got you covered here, and for those of you wondering just who Fannie Mae is, well let’s just say she and her friends help people get discounts on Fannie Mae homes. Check out the page to find out more.
• Remember Fannie Mae? Well Freddie Mac homes are the same way; if you find yourself looking at a Freddie Mac home, then you should look into getting more help with your mortgage here.
•  The Nationwide Mortgage Licensing System and Registry has been featured on this blog before. Basically, they are the guys you go through to verify that your lender is registered and licensed. 
• Here we have the National Mortgage Brokers Association, which is comprised of mortgage brokers that follow a code of ethics. It’s always a plus when a mortgage broker is registered with these guys.

These links and more all contain useful information pertaining to purchasing a new home and remember that the full list is available on our website. At Indigo Mortgage, we know the market is tough, the economy is down, and buying a home is always going to be stressful. That’s why we are striving to make things easier for you.   

Posted by Indigo Mortgage at 9:21 AM 1 comment:

 

Indigo Mortgage’s Loan Term Dictionary

Buying a house is a stressful thing; it can feel like all legal mumbo-jumbo and often hundreds of pages of paperwork to review and sign.

Yes, home buying can be a stressful experience, but it does not have to be if you educate yourself on the process and what all that legal stuff really means.

At Indigo Mortgage, we want to help you understand what you are doing. To get you started, we have prepared a list of terms that are often related to mortgage loans and mortgage lending.  

Loan Terms Unveiled

• Auto-Debit -- you know when your credit card bill automatically takes a payment out of your bank account so that there is no confusion and debt pile up? Well, that is essentially what Auto-Debit is -- direct withdrawal of your funds to make payments towards the loan.
• Capitalization is used to describe computing interest. If your loan capitalizes, then it means the rate just went up.
• Cosigner is the person agrees to cover the debt I you somehow become unable. Usually, this can be your parents or spouse. It is used to allow the borrower to meet credit worthiness and makes the cosigner the primary holder of loan.
•  Credit-based is a process that looks up your credit history and current income to determine if you are financially able to pay back the loan like you claim to be. It essentially looks to see how responsible you are and if you lie to your friends about what you make every month.
• Credit Score -- when mortgage companies are coming to a decision on if they can trust you with their money or not, they look at your credit score. Just like in grade school, the higher the number, the better your chances of passing their qualifications.
• Deferment is also best explained like a credit card or even financing. You know when it says make no payments until June 2013? That is deferment; it gives you time to pay it off without interest. With houses though, it is basically a way to give you the time to settle in and sell your old house.
• Fixed Interest Rate is a stable interest rate that does not change; for the most part, you want one of these. Get it for a low as possible and make sure they can’t change it on you.
• Interest is the extra percent that you pay to the mortgage company for them letting you borrow it in the first place.  
• Origination Fee is a fee that is charged to you by the lender that varies on where the money came from and what fees may have incurred because of it.
• Variable Interest means that your interest can change -- possibly for better but worse is also a possibility.

We, at Indigo Mortgage, hope that you now have a better understanding of them. Remember that if you are looking for a lender, we consider you to be part of our family and not just another customer.

Posted by Indigo Mortgage at 10:38 AM 1 comment: