One of the ironic elements in the recent explosive growth in mortgage fraud is that it is the lenders who are being ripped off, even more so than the consumer. The impact of mortgage fraud in Georgia has led to the formation of the Georgia Real Estate Fraud Prevention & Awareness Coalition (GREFPAC). This group is made of principally of professionals in the industry who have a compelling interest in closing the loopholes in the lending process that allow for theft.

GREFPAC has a website that provides a volume of consumer information regarding the types of mortgage fraud that exist and how to spot a scam. Mortgage fraud often involves defrauding the lending institution, but the term also includes types of scams that lead to consumers losing their homes in phony refinancing deals. This organization is also making an effort to educate the law enforcement community on the nature and sophistication of mortgage fraud in the state, particularly in the Atlanta area. Visit their site at http://www.grefpac.org/.

Georgia’s Department of Banking and Finance also has a consumer oriented resource located at http://dbf.georgia.gov/00/channel_title/0,2094,43414745_46296143,00.html. There you can find information on the Georgia Fair Lending Act; this legislation puts teeth in the regulations regarding excessive fees and loan misrepresentation. There is also a Mortgage FAQ section that covers issues for both professional and consumer. There are sections on licensing; fees; escrow accounts; insurance and many other relevant topics. Finally, the web page has a section on financial issues for seniors that covers reverse mortgages in some detail.

The same State Department has also compiled an alphabetical list of FAQs that you can search by letter. They extend from adjustable rate mortgages to vehicle leasing; there are no w; x; y or z FAQs. There are some unexpected surprises among the information there; a random selection of ‘escrow fees’ led to a HUD web site that explained how escrow fees are limited by federal law and escrow violations detailed in the same federal act. Their section on ARMs leads to the Federal Reserve Board’s consumer basics on these loans. There is also a mortgage shopping worksheet at the Fed’s site that could prove to be useful.

Georgia’s state regulatory apparatus seems to be up to date on the problems in the present mortgage market and has a solid record of consumer advocacy. In 2002, Georgia passed one of the country’s toughest anti-predatory lending laws. Among other things, it would have made not just the originator of a loan liable for abusive practices, but any investor who purchased the loan in the secondary market. Numerous lenders threatened to stop doing business in Georgia.

Shortly afterward, the two principal federal regulators – the Office of the Controller of the Currency and the Office of Thrift Supervision – said that Georgia’s law didn’t apply to their regulated institutions. This notion of pre-emption has caused the paralysis in Washington over irresponsible banking to impact state-level legislation. Georgia later weakened the law’s most contentious provisions.

By: G. Mundy

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Simply put, a fixed-rate mortgage means that you will be paying the same amount of principal and interest for the entire period of your loan. With a fixed rate mortgage, even if your property taxes and insurance premium go up, you will still be subjected to a fairly stable payment scheme. This will make it easier for you to budget your expenses.

Kinds of fixed-rate mortgages

Florida offers a variety of fixed-rate mortgages. There are different terms available starting from 10-year, 15-year, 20-year, to 30-year payment schemes. There are even some fixed-rate mortgages that are paid bi-weekly. This means that you get to pay a fixed amount every two weeks and in effect, it will shorten the life of your mortgage.

How it works

In a fixed-rate mortgage, a large percentage of your amortization will go to the interest and just a small part of it will go to the principal. This will gradually reverse as the mortgage matures. If you are able to get a good deal on your interest rate, a fixed-rate mortgage locks your interest rate in low levels for the rest of the term.

The downside

A fixed-rate mortgage could be hard to obtain if you do not have a positive credit file. This is most commonly the case as fixed-rate mortgages have stricter guidelines and higher standards for requirement (compared to other non-conventional programs). It is also possible that you may have to pay higher interest rates compared to adjustable mortgages to be able to secure a fixed-rate. And because fixed-rates do not vary throughout the whole life of the mortgage, you will literally lose money in the event that interest rates in the market go down.

By: Ken Marlborough

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Commercial mortgages are mortgages that are provided by commercial lenders, generally at a higher rate than a domestic mortgage. There are a number of benefits of commercial mortgages. It helps to retain ownership of property to the borrower. The lender is only allowed to get an interest return on its mortgage and not a percentage of ownership that an investor would expect. Interest payments on mortgage are tax deductible and are made with pre-tax money.

In Maryland, there are national commercial mortgage loan brokers who are basically commercial real estate financing experts. They help people find and close commercial mortgages for all types of commercial real estate. They help find, the best commercial loan rates, and charge less than other traditional commercial mortgage brokers. The brokers provide various commercial financing solutions for borrowers, especially with weak cash flow, delayed property maintenance, and tenant rent issues.

Commercial mortgages are categorized as apartment, construction, development industrial building, retail center, office building, and industrial building loans.

There are Maryland Commercial Financing Divisions that provide commercial real estate financing solutions for a number of Maryland commercial properties located across the state. Their loan programs are efficient in providing borrowers fast and flexible financing options at low rates.

In Maryland, there are small balance commercial mortgages that provide real estate financing for commercial loans under $1,000,000. They have a two-day approval process for streamline underwriting, and a 30 years term end period.

Maryland has stated income commercial loan programs for commercial real estate and also provides multifamily loans. There is no requirement of income verification and have a mortgage loan term period of 15-30 Years.

Commercial mortgages are also accessible through the Internet. The online mortgage loan services are established to assist buyers of real estate properties, seek the best deal in commercial mortgages and fulfill their dreams of acquiring a commercial property.

By: Jimmy Sturo

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Mortgages