Mortgage Services and Mortgage Service Providers
Have any idea what will happen to one’s housing loan after signing the loan contract? Many borrowers are misled to the idea that all institutions from which the loan originated will be the one servicing the loan.
But, this is not entirely true because most companies’ mortgage services are bundled and sold to higher financial institutions or mortgage service providers, days after their housing loan is closed.
Increase in the rate of this financial practice is observed and a stature entitled National Affordable Housing Act specifically addressing and regulating this practice has already been passed and is currently being implemented. This enactment provided guidelines to mortgage service providers that provides for various rules and regulations to follow on the course of the loan servicing.Indeed, it should be understood by borrowers since they are the main stake holders of their loan and for them to file necessary inquiries and complaints if unnecessary disputes took place.
As provided and maintained by the country, mortgage services are as follows: setting up a monthly amortization schedule, collecting monthly payments and handling borrower’s escrow accounts, and making yearly report detailing the escrow account, account balances and tax payments insurance pay-out. These are the mortgage services that should be observed meticulously by these service providers.
Aside from these main services, those providers should also comply with the terms and agreements provided by the National Affordable Housing Act. These provisions are as follows: providing the details of the loans, informing the borrower that his or her loan will be sold to mortgage service providers and responding to written and formal complaints if any
These are some of the necessary information a borrower should know after he or she closed a loan contract. This is essential because once mortgage services were not appropriately delivered and a mortgage service provider despite various written inquiries about the undelivered service failed to comply with such demand, the borrower can do various serious actions against the provider. One of which is to file a direct complaint through the nearest local or state office of consumer protection. The borrower can also opt to go to the Department of Housing and Urban Development (HUD) if the requests are continuously ignored. The borrower can file a complaint there under the National Affordable Housing Act or the HUD’s Office of Single Family Housing. Aside from that, the borrower can also have her complaint directed to the Correspondence Branch of the Federal State Commission. And for further legal actions and consultation, the borrower can forward his or her case on an attorney