The Mortgage Consumer's Bill Of Rights was conceived and written by Franklin Raines, President of the Fannie Mae Foundation. The Mortgage Consumer's bill of Rights was designed to lay down a set of guideline for lenders to follow that allow more Americans to become homeowners, and to allow potential home buyers access to see what information is used when factoring their eligibility for a mortgage.
A total of $2 trillion over the course of a decade, has been set aside to ensure that the goals of the Mortgage Consumer's Bill of Rights are realized.
The Mortgage Consumer's Bill of Rights adheres to the strict belief that all Americans should have equal access to mortgage availability. One of the Bill's main goals is to eliminate discriminatory lending practices.
These practices have led to a serious gap between home ownership by the various racial and economic classes. Fannie Mae strives daily to close this gap and make home ownership available to everyone; regardless of their social status, race, or creed.
The Mortgage Consumers Bill of Rights gives you the right to know exactly what you are paying for. Most mortgages include the various fees involved in buying a home, such as: down payments, appraisal fees, PMI (private mortgage insurance), interest, and closing costs.
Knowing exactly what percentage of your monthly payments will be going toward these fees, and what percentage will actually be applied to your principal amount should always be considered before choosing a lender.
You have the right to qualify for special, low rate mortgages. There are numerous programs available to potential homebuyers of all types, from first time buyers, to women and minorities. Fannie Mae is a very popular option for those who have been turned down by other lenders due to lower income, less than perfect credit, or social station.
The Bill also hold to the tenet that all homeowners have the right to be free from unnecessary government intrusions such as regulatory fees, and undue paperwork - which is an intrusion of your time. You must still comply with zoning ordinances and building codes; this simply means that the government can not charge you exorbitant fees at closing time, or try to hinder the process of obtaining a mortgage in any way.
The Mortgage Consumer's Bill of Rights states that, as a homeowner, you have the right to know exactly what is happening with your mortgage. Too many lenders will simply try to rush you through the process of obtaining your home loan. Don't let them! You have the right to have every aspect of the mortgage process explained to you in simple, straightforward language that you can understand.
If there are any questions in your mind regarding your mortgage, be sure to have them clarified by your lender before you close the deal. Not taking advantage of your rights as a consumer could cost you a lot of money in the end if you decide you want to change your mind down the road.
