We are extremely concerned about today's borrowers. The market has changed. FHA loans are hot. Many unethical brokers have simply switched from selling negative amortized loans to selling FHA loans. Same bad actors, same unethical tactics; different product.
Palm Springs, CA (PRWEB) June 25, 2008
Clean Up Real Estate Clean Up Real Estate (CURE) a California non-governmental consumer advocate announces a new campaign aimed at FHA loan programs: CURE-FHA CURE-FHA This new campaign focuses on monitoring FHA loans and protecting borrowers against loan abuses. This program is free to borrowers.
FHA loans hold special peril for unsuspecting borrowers. Many are lulled into a false sense of security. They think that a federal agency program like FHA means that they are protected by the government. They do not understand that FHA is an insurance program that protects banks, not borrowers. Their faith in government protection leaves them particularly vulnerable to loan abuses.
Genene Miller, Executive Director of CURE, explains it this way: "The mortgage meltdown was greatly facilitated by unethical brokers. We saw too many brokers who were more concerned with their wallets than the customer's interest. They saddled borrowers with bad loans. And even worse, they took outrageous commissions at the borrower's expense."
She continues "We are extremely concerned about today's borrowers. The market has changed. FHA loans are hot. Many unethical brokers have simply switched from selling negative amortized loans to selling FHA loans. Same bad actors, same unethical tactics; different product."
The CURE-FHA program is designed to protect borrowers against last minute gotcha's, bait and switch tactics, lies about rate locks, loan manipulation, and commission gouging. This free service monitors Broker's behavior in each individual FHA loan transaction. CURE protection means that loan brokers must adhere to specific standards:
- A cap on total loan commissions (rebate and/or origination).
- Fees and costs are monitored to ensure that the Good Faith Estimate is accurate
- Required disclosure of all fees and costs
- Cost in excess of the estimate are paid out of the broker's commission
- Rate locks are monitored
- Broker commissions in excess of the CURE standards are refunded to the consumer
- Broker registration validates licenses and credentials
About Clean Up Real Estate (CURE)
Clean Up Real Estate (CURE) is a consumer watchdog group with a private non-governmental solution for preventing mortgage abuses. The CURE Mortgage Protection Standards limits commissions. CURE monitoring validates rate locks and scrutinizes costs. While SAFE seeks to monitor Brokers licensing; CURE monitors Broker's behavior in each individual loan transaction.