MAA in the News - NBC

 

By Steven Luke - NBC/KNSDPosted

By Jeremy Lee - NBC, Louisiana

March 13, 2008 -

Most buyers would never think of purchasing a home without getting an inspection.

But most buyers never even consider a mortgage inspection.

Experts say all to often buyers are duped by the fine print in those loan papers.

That’s why it could be helpful to have the documents reviewed by an objective third party.

From sub prime to mortgage meltdown, you’ve heard the stories and seen the results.

Experts point to risky loans as the big factor in today’s troubled real estate market.

”Most borrowers are confused and frustrated when they get this stack of loan documents on their table and are told to sign away with a notary,” said Tyler Belong co-founder of the Mortgage Accountability Association.

Real estate attorneys Belong and his partner Jeff Hogue are real estate attorneys.

They’re often hired to review commercial loans, but say most home buyers skip this important practice.

The two men have formed the Mortgage Accountability Association.

For a one-time fee, they’ll scour your loan docs and give you an objective third party review.

Hogue said, “If they’re paying a disproportionately high fee for something, I think they need to be aware of that.”

From the term to the interest rates, borrowers get the lowdown on everything including possible prepayment penalties.

“They’re usually not disclosed to them. So if they want to sell their house in three years and they have a huge prepayment penalty, that could keep them from doing that,” said Hogue.

One of the most common items overlooked, a fee called YSP or yield spread premium.

“It’s not paid by the borrower, but it’s paid by the lender to the broker because the interest rate is higher,” Belong said.

It’s a buyers market, but when it comes to loans it’s buyer beware.

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