Do you want to know that your home buyers remain satisfied with their mortgage loan long after they sign their closing papers? Then it’s essential to understand how a prospective lender services its portfolio. Will the lender sell the servicing rights immediately? Perhaps it has its own in-house servicing department. Oftentimes, these are the questions that never get asked. But if it’s important to your buyer that the servicing of his or her loan remains local, then it’s important for you to examine the lender beyond its interest rates and closing costs.
The newly created Consumer Financial Protection Bureau (CFPB) has enacted new regulations this year that all servicers must abide by in an attempt to create consistent standards, but the fact remains that consumers cannot “fire” their mortgage servicer for poor performance. So don’t hesitate to ask the lender a few key servicing questions:
- Whom should my buyers contact, if they have concerns about their escrow account?
- What payment options are available for clients who want to pay off their loans early?
- What assistance is available to a client who encounters a financial hardship?
These are examples of some of the more common questions clients may have months and years down the road. If the lender is unable to provide satisfactory answers, or at least refer you to a point of contact, then that could signal a red flag. After all, a mortgage is a long-term commitment, so your buyers should feel confident they’ll be taken care of and treated fairly for the duration of their loan terms.
Provided by our friends at Capitol Federal
