Carrington Mortgage Services Launches MyLoanDetail

Posted by Patrick Barnard on April 01, 2015 No Comments
Categories : Residential Mortgage

Carrington Mortgage Services has introduced MyLoanDetail, a proprietary online tool designed to help borrowers understand their obligations under their mortgage application and contract.

Carrington reports that nearly 10,000 borrowers have already used the solution in beta trials. The company now requires all borrowers to complete the program prior to their loan funding.

‘Extending credit to clients in the underserved market requires a heightened sense of dual responsibility – and that begins with more effective borrower education through resources such as MyLoanDetail,’ says Ray Brousseau, executive vice president of the company's mortgage lending division, in a release. ‘As the industry does more to help potential borrowers understand how the lending process works and their specific responsibilities, lenders' ability to meet the needs of a larger population and originate more loans to more customers will improve.’

The new system will be particularly beneficial considering that the Federal Housing Administration's Homeowners Armed With Knowledge (HAWK) program, which would have educated many borrowers about the mortgage process, saw its funding cut in December and, thus, never got off the ground. Lenders such as Carrington are taking the lead in terms of educating their borrowers about the intricacies of the mortgage process. Meanwhile, federal agencies, such as the Consumer Financial Protection Bureau and the U.S. Department of Housing and Urban Development, have rolled out more general borrower education initiatives.

Carrington says its MyLoanDetail solution gives borrowers a short explanation of the mortgage process and confirms each borrower's understanding of his specific loan. It covers key mortgage concepts and terminology and introduces borrowers to the professionals involved in the process and their roles. In addition, the system reviews a borrower's loan details and payment information prior to closing.

Borrowers are asked to confirm the accuracy of information provided in their loan application and are given an opportunity to provide additional information that may be important in processing the application and verifying their ability to repay.

MyLoanDetail also addresses transaction costs, down payment amount, mortgage loan principal amount, term of the loan, interest rate and monthly loan payment, as well as what happens in the case of missed or late payments.

A review of the borrower's current annual and monthly income is provided, as well as the expected monthly mortgage loan payment amount. Mortgage payment options are outlined, along with budgeting details including non-housing-related living expenses and other monthly debt payments.

For more, click here.

Register here to receive our Latest Headlines email newsletter

Leave a Comment