Entitle Direct releases new guide for comparison shopping Entitle Direct has created an informational guide to help consumers benefit from the new Good Faith Estimate (GFE). This is the first in a series of guides from the industry innovator to help demystify real estate financing and empower consumers to take control of the mortgage closing process. The new GFE, which went into effect on Jan. 1, 2010, encourages consumers to first shop and then compare fees from various lenders before choosing a mortgage. It helps consumers understand what services they can shop for, so they not only receive the lowest interest rate and best terms, but save significantly on their closing costs as well. “We published The Smart Consumer’s Guide because we want
borrowers to aggressively compare fees from different lenders and third-party service providers, including title insurance companies, before choosing a mortgage,” says Timothy Dwyer, chief executive officer of Entitle Direct Group and founder of Entitledirect.com. “Our guide will help consumers shop for a mortgage, and then compare, analyze and finalize. This important process will help borrowers avoid overpaying in closing costs what they might save with a lower interest rate.” The Smart Consumer’s Guide provides a step-by-step explanation of the new GFE, including clear definitions of the document’s financial jargon and layout. It walks readers through each section of the GFE, highlighting ways consumers can compare and lower their financing and closing costs. For more information, visit www.entitledirect.com.
Generation Mortgage offering new zero origination and servicing fee reverse product
Flagstar to offer Job Loss Protection product on low downpayment mortgages
Generation Mortgage Company has announced the introduction of a new fixed-rate reverse mortgage product with no origination fee and no servicing fee to provide senior clients more upfront loan proceeds at a lower cost. The new Home Equity Conversion Mortgage (HECM) loan offering is now available in Generation Mortgage’s retail and wholesale channels. “Generation Mortgage is pleased to support our senior community by ensuring we evolve as our industry evolves with improved product options,” said Scott Peters, president and chief executive officer of Generation Mortgage. “We are very happy to provide access to more equity to our senior clients with these new changes.” The new zero origination fee, zero servicing fee product applies to Generation Mortgage’s Federal Housing Administration (FHA)-insured HECM fixed-rate product and allows qualified borrowers age 62 and older to receive additional, upfront loan proceeds of up to $10,000 or more, depending on the equity in their home. For its wholesale channel, as of April 1, Generation Mortgage began offering its brokers and correspondents a fixed-rate HECM loan product option with no servicing fee and no origination fee. For more information, visit www.generationmortgage.com.
Flagstar Bank has announced a new low downpayment mortgage benefit designed to cover a homebuyer’s mortgage payments if he or she becomes involuntarily unemployed. Called “Job Loss Protection,” the benefit is available at no charge on new loans with mortgage insurance provided by Genworth Financial. Mortgage insurance is required on loans with downpayments of less than 20 percent. “We’re happy to work with Genworth to offer this enhancement to our low downpayment loans. It will protect what is often a person‘s single largest investment—their home,” said Bill Robinson, executive vice president of Flagstar’s home lending division. “The job loss insurance will provide peace of mind for buyers concerned about the employment situation in today’s volatile economy.” The program covers a borrower’s mortgage payment (principal, interest, taxes and insurance) of up to $2,000 a month for up to six months during their benefit period, with a maximum of three monthly payments per job loss occurrence in the event of involuntary unemployment. Benefits are paid directly to the mortgage company just continued on page 28
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