Springboard Launches Pre-purchase Counseling Platform for Borrowers Obtaining High-Cost Mortgage Loans

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HOEPA.org Features Free Lender Tools and Reference Materials for Creditors and Borrowers

It’s imperative that consumers understand the provisions of a pending home loan before entering into any high-cost mortgage.

Springboard Nonprofit Consumer Credit Management, Inc.® (“Springboard”) is pleased to announce the expansion of services available to creditors and home loan borrowers obtaining high-cost mortgage loans that must comply with the 2013 Home Ownership and Equity Protection Act (HOEPA) issued by the Consumer Financial Protection Bureau. As of January 10, 2014, the Act applies to most mortgage loan types including open lines of credit that have rates and/or fees above certain thresholds or triggers and are secured by the borrower’s principal residence. For loans that are considered high cost under the Act, creditors must give prospective home loan borrowers additional disclosures, avoid certain loan terms, and ensure that borrowers receive additional protections, including homeownership counseling. Springboard provides such homeownership counseling through its Priority Pre-purchase Counseling(sm) services. Springboard is also offering support of the Act through HOEPA.org, which includes free tools and reference materials for both lenders and consumers.

“It’s imperative that consumers understand the provisions of a pending home loan before entering into any high-cost mortgage. We encourage prospective borrowers to call Springboard today to request a Priority Pre-purchase Counseling appointment as well as visit HOEPA.org to learn more,” said Aaron Horvath, Springboard’s executive vice president.

As part of the HOEPA requirements, the certified counselor must review the Good Faith Estimate (GFE) with the borrower. Springboard is pleased to offer GFE Secure Delivery? when requesting an appointment online at HOEPA.org. This functionality helps expedite the counseling process for the consumer. In addition to providing the certificate of counseling required under the program for new loan applicants, Springboard’s Priority Pre-purchase Counseling? provides Customized Action Plans designed to improve personal finance knowledge and management.

For lenders, a reference guide which contains all the key compliance information condensed into a short outline for quick reading may also be downloaded at HOEPA.org.

“We support the work of the Consumer Financial Protection Bureau to ensure that consumers get the information they need to make the financial decisions they believe are best for themselves and their families. HOEPA.org is our response to the undertaking to educate consumers considering a high-cost mortgage loan,” said Horvath.

About Springboard Nonprofit Consumer Credit Management, Inc.

SPRINGBOARD® Nonprofit Consumer Credit Management is a 501(c)(3) nonprofit personal financial education and counseling organization founded in 1974 with the mission of improving the financial well-being of individuals and families. Springboard is a HUD-approved housing counseling agency and a member of the National Foundation for Credit Counseling and Association of Independent Consumer Credit Counseling Agencies. Springboard offers personal financial education and assistance in credit counseling, housing counseling, debt and money management, pre-bankruptcy counseling and debtor education through educational programs and confidential coaching. Springboard is accredited by the Council on Accreditation, signifying the highest standards for agency governance, fiscal integrity, counselor certification and service delivery policies. Counseling is available by telephone nationwide or in-person at office locations in California, Arizona, Nevada, New Mexico, Texas, Massachusetts, South Carolina, Florida and Maryland. For more information on Springboard, please call 800-449-9818 or visit their web site at Springboard.org.

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