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Show The SaltLake Tribune OPINION Sunday, October 28, 2001 AAS HUD Is TakingAction to Thwart Predatory Mortgage Lenders BY MEL MARTINEZ valuable tool for opening the doors of homeownership, especially to lower-income and minority families for whom the biggest obstacle to homeownership is accumulating enough cash for the downpayment and other closing costs. The yield spread premium allows cashstrapped buyers to pay some or all of the upfront settlement costs overthelife ofa mortgage. in ing clude the yield spread premium, a fee paid by a lender toa mortgage broker that is then typically rolled into the cost of the ’s loan in the form of an interest rate higher than the marketrate. Most everyone agrees that the more financing options consumers have, the better. the process by steering homeOne of those options, the yield buyers to accept higher interest spread premium, can be a rates without the benefit of a — = %& Wireless SALT LAKE 2002 : is thrust upon the buyerat the last moment, they have no opi to determine whether these extra costs are at allreasonable. On the spot, oftentimes while the moving truck sits idling in the driveway,the purchaser is required to make an impossible choice: either come up with the extra cash andsign, orlose the house. Americans spend approximately $50 billion each year at the closing table, and I would suggest that most of them have | Mo idea where their money | went. This is unacceptable, and : Tam determined to do something aboutit. Congress originally took on this problem in 1974 by enacting the Real Estate Settlement Procedures Act (RESPA), which was intended to protect consumers from paying excessive closing costs when they buy a home or refinance a mortgage. But even after years of tweaking, RESPAstill does notclarify for lenders and borrowers which fees are appropriate or when they must be disclosed. = x , HUD has clarified its rules to preserve yield spread premiums as an important homeownership tool for consumers — with the caveat thattheybe fully disclosed up front. The consumer should know whois receiving fee, the amount of the fee, and what information they need to make the right decision for their families. HUD is committed to creat- cludes personnel for responding to complaints, and a new $1.25 million contract for in- buying yeseens in ing a consumer-friendly home- In doing this, we will inspire greater public confidence in the mortgage lending industry These steps the beginning ofwhatwill be an ongoing process. President Bush has made it clear thathis administration will do everything in its power to make sure homebuyers have all the endless wireless. get up to 3400 minutes per month.save up to $135. Sign up for the AT&T Digital Advantage $39.99 monthly plan and get: The Department of Housing 400 anytime minutes 2000 night and weekend minutes andeither: 1000 Mobile-to-Mobile minutes or nationwide long distance included all for as long as you keepthe plan necessary re- forms. As a central part of this effort, we will require unprecedented disclosure in the homebuying process. Mobile-to-Mobile minutes apply to calls placed to and from other AT&T Wireless subscribers within a select calling area. Anytime minutes, night and weekend minutes and nationwide long distance available from your HomeCalling Area. quires fall disclosure, so that whena family arrives for their closing, they know: how much cash they will need; whois being paid, and for whatservices; and whether the costs are reasonable. In fact, this information should be available at the time get up to $135 in savings with 2 year agreement a prospective homebuyer sub- activation fee waived they forcanthe usebest it to help them loan for thei aay a et mail-in service rebate total savings mits an application, so that +$35.00 R289LX mail-in phone rebate sign up +$50.00 tod ay +$50.00 $135.00 RESPA reform will take some time as we all work together to craft a ae Beshould not cause consumers have to wait for these protections wale the as in ; Just purchase an IntemnetAT&T Digital PocketNet® process under have ismusad a letior to FHAI inortoage closing all fees at the time of services the consumer is receiving in return. Finally, we are dedicating ‘ditional ‘Ofte Sponsorofthe XOXOtympleWinterGarman and Urban Development has taken the first steps in what -will be an ongoing effort to take the mystery out of the maze of forms,fees and procedures that families grapple with when they close on a new home. Our focus is on ensuring better protections for new homebuyers and those who refinance,offering clarity for the mortgage lending industry about their disclosure responsibilities, and providing an additional tool to fight predatory lending. lenders strongly encouraging them to begin immediately dis- cut in upfront OF ice to eae cae get a special: sports bag withAT&TWireless Olympic; 1800-IMAGINE Winter Games commemdrative items. . C attwireless.com neous A Patriotic Song (S22) makeof “God Elees‘America Lf \ sacoeal oatianal atithers: wich . sreManat 801-575-1300 10645 . . State St. 801-571-1719 OGAN 6970 S, Highland Dr. 1-94-8181 Clreeit City Comp USA ‘Fractiia Covey officer sing “God Bless Ameri. ca” in the future,I'm sure you'll be moved, In my opinion, his is a close second to Kate Smith’s rendition. Stan Jacobsontives in Salt Lake City. ‘rebate ls procented. See rebatecoupon for hil details, Not avalablei Home CallingArea. 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