Most Borrowers Prefer Ethical Mortgage Lenders
Most people have to use mortgage lenders when buying a home. After all, real estate is so expensive. The average cost of a home in Florida is roughly $377,000. Of course, many homes cost much more. So as you can imagine, it’s hard to come up with so much cash in one go.
That’s where mortgage loan originators come in. Mortgage lenders underwrite home loans. They set all the main details of your mortgage, such as the interest rate and terms. However, before you can get a loan, the mortgage loan originator will assess your income and credit history to determine your ability to repay a loan.
Not all mortgage loan originators are alike, though. Some are unethical, inflating fees and interest rates for their own benefit.
Research from Great Southern Bank has shown that borrowers prefer ethical lenders, which should not come as a surprise. More than 90% of borrowers would prefer to go with a lender that holds a high standard of business ethics as well as social/community values and environmental commitments. However, not all lending companies have all these characteristics. Nearly 80% of borrowers found it challenging to balance their personal ethics and values with choosing a lender that will save them money. Indeed, an overwhelming majority of those looking to refinance are looking for better deals, so saving money is a huge factor.
Code of Ethics for Lenders
Like all licensed professionals, mortgage lenders need to be ethical. Here are some considerations to keep in mind:
- Mortgage lenders should provide borrowers with clear and accurate information about loan terms, fees, and interest rates. Borrowers should be able to understand the terms of the loan and the financial commitment involved.
- Lenders should treat all borrowers fairly and equally, which means that they should not discriminate based on race, gender, age, disability, or any other protected characteristic.
- Mortgage lenders have a responsibility to ensure that borrowers can afford the loans they are offering. This means not using predatory lending practices, which are fraudulent and deceptive tactics that some lenders use to dupe home buyers into mortgage loans that they can’t afford. There should be thorough financial assessments of borrowers.
- Lenders should have strong moral principles. There’s a lot of money involved, so mortgage loan originators need to be honest and act with integrity.
Keep Your License With Help From a Tampa Mortgage Loan Originator Lawyer
People looking to buy a home want their mortgage lender to be ethical. It only makes sense, as there is a lot of money on the line.
Because of the ramifications involved, all mortgage originators need to meet certain requirements and be properly licensed prior to conducting any mortgage transaction with a consumer. Are you facing licensing issues due to ethics violations? If so, contact a Tampa mortgage loan originator lawyer from The Law Offices of David P. Rankin, P.A. We will help you obtain the successful resolution you need. To schedule a consultation, call (813) 968-6633 or fill out the online form.