Feb 10, 2015

Controversial Rate Checker Tool Tweaked

OD_BloggerUnder strong criticism from the Mortgage Bankers Association and other industry trade groups, the Consumer Financial Protection Bureau made tweaks to its controversial Rate Checker consumer tool.

But MBA President and CEO David Stevens said the tweaks do nothing to resolve “fundamental flaws” with the tool and continue to provide “misleading” information to consumers. 

On January 13, the CFPB unveiled this new borrower education tool on its website (Click Here for Rate Checker) ostensibly to help consumers be better informed of rates and other costs when shopping for a home loan. CFPB said this Rate Checker tool will allow consumers to “see what interest rates people with similar financial situations have been offered.”

The tool uses a credit score, state; property location and a down payment percentage to generate an estimate for a borrower of rates available.

The website which indicates rate information for the rate checker is provided by a private firm who collect data from “actual lenders and is updated every business day.” “When the imprimatur of the government is associated with particular data, the public assumes the data are complete and accurate. However, the lenders’ rates incorporated in the tool include only a mix of large banks, regional banks and credit unions. Notably, rates from independent mortgage banks do not appear to be included in the data. Similarly, discount points, origination fees and mortgage insurance are not included, yet are a significant part of the cost of residential finance–and are critical for any website that purports to be a comprehensive borrower decision tool.” 

Source: Mortgage Bankers Association

 

By OD Blogger Consumer Credit, Loans, Mortgage, Real Estate No comments Tags: , , , ,

Feb 6, 2015

What Tenants Should Know About Security Deposits

What is a security deposit?

A security deposit is any advance money a tenant gives to a landlord as security against damage to the rental premises or for advance rent. A security deposit may be called a “damage deposit,” “last month’s rent,” a “pet deposit,” or by another name.

How do I get my security deposit back?

A landlord is required to give you notice of his or her intention to keep all or part of your security deposit and the reason for imposing this claim. If the landlord does not plan to make a claim against the security deposit, he/she has 15 days after the premises are vacated to return the deposit. If the landlord plans to make a claim against the security deposit, he/she has 30 days to send you such notice by certified mail. Otherwise, he or she forfeits the right to keep any of the deposit.

To protect your rights, you must advise the landlord of your new address. Because the landlord is obligated only to send the notice to your last known mailing address, always give written notice of your new address to the landlord.

If after 30 days the landlord does not return your deposit or send you a letter stating why all or part of your deposit won’t be returned, you can sue him or her for the return of the entire deposit. If the landlord sends you a letter, and you disagree with the landlord, you must write back within 15 days (certified mail recommended but not required) stating that you object to the landlord’s claim on your deposit.

If you and the landlord cannot agree, you can sue, but you will have to prove that you were not responsible for the claimed damage. Photos and/or an independent inspection would be helpful.

If you do not object in writing after receiving the landlord’s letter, the landlord may deduct the amount of his or her claim and, as required, forward the balance (if any) to you within 30 days of the original notice. It is questionable whether a tenant can sue for return of the deposit if he or she has not objected.

Information provided by FloridaLawHelp.org
To locate your local legal aid or legal ser-vices office, please visit www.floridalawhelp.org

By OD Blogger Home Owner's Resource, Real Estate No comments Tags: , ,