Guaranteed Mortgage Quote LLC has developed a new mortgage application processing system that includes a guaranteed closing provision for borrowers, and has been granted U.S. Patent #7,788,148. The patent covers the business method allowing mortgage lenders to offer borrowers a written guarantee that their loan will close under the originally disclosed terms. And, if that turns out not to be the case, the borrower is eligible to receive a Guaranteed Mortgage Quote payment. This payment may be used to reduce the closing costs for a loan the borrower ultimately qualifies for, or the borrower can elect to receive a guarantee payment check and walk away from the deal. Borrowers must verify and maintain all their application information through the time of closing in order to qualify for the guarantee.
"Even after all of the federal and state regulations designed to address the country's mortgage-induced financial crisis, the mortgage industry still has one dirty big secret," said Alan Bercovitz, founder of The Guaranteed Mortgage Quote. "That secret is the amount of mortgage 'fallout' caused by mortgage loan originator oversights. Too many borrowers are 'approved' for mortgages they don't qualify for because originators did not fully analyze the borrower's financial situation. These errors are ultimately discovered during the underwriting process when it's too late to save the applicant from financial harm.”
Bercovitz created this program to give borrowers, home sellers, and Realtors a way to know which mortgage companies are certain that their mortgage approvals will lead to successful closings. A Guaranteed Mortgage Quote will effectively replace the commonly used so-called Pre-Approval, which does not incorporate this performance guarantee.
To reduce fallout, the system includes software that generates a highly-detailed supplemental application, called The Complete 1003. The Complete 1003 contains all the additional crucial mortgage application questions that are missing on the industry standard 1003 form. The Complete 1003 also incorporates the Fannie Mae, Freddie Mac, FHA, and FHA/USDA guidelines underneath each pertinent application question. This gives mortgage loan originators all the information needed to determine if a borrower truly meets the requirements of the mortgage program so that the application package will pass through underwriting.