Carrington Mortgage Services LLC has announced the availability of MyLoanDetail, the company’s proprietary online loan review resource designed to provide borrowers with a thorough understanding of their obligations under their mortgage application and contract. Advocates of improving borrower education, Carrington developed this patent pending initiative to help enhance consumer understanding of loan terms and responsibilities. Nearly 10,000 borrowers have successfully utilized the patent-pending MyLoanDetail process in beta trials and 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,” saidCarrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau. “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.”
MyLoanDetail consists of a short explanation of the mortgage process and confirmation of the borrowers’ understanding of their specific loan. The program includes key mortgage concepts and terminology, an introduction to the professionals involved in the process and their roles, as well as a review of the borrower’s loan details and payment information. 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.
“The month kicks off National Financial Literacy Month, a national month-long initiative to help consumers take increased responsibility for their personal finances,” said Brousseau. “We recognize the value of this initiative and the significant financial undertaking involved in owning a home. We are delighted to help borrowers better understand their financial commitment for the duration of their loan.”
In order to provide borrowers with as much insight as possible into their responsibilities related to a mortgage loan, MyLoanDetail 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.
