SoFi and Online Mortgage Lending

SoFi – How Millennial Usage of Online Mortgage Lending is Changing the Home Lending Landscape

A young couple each in their early 30’s found themselves buying a house outside of San Francisco. Being first time buyers, they searched for sources of financing on the Internet. Online they found a lender called social finance (SoFi). They received pre-qualification in 15 minutes and then got the documents for pre-approval and submitted a formal offer within a week. Because of SoFi’s simplicity, they were able to easily close on their new home.

Large groups of millennials are changing the mortgage industry because more and more lenders are using technology that enables borrowers to submit documentation online. This allows more non-bank start a blenders to compete in the mortgage industry and it also gets mortgage brokers out of the mix (who many blame on the crisis of the last decade) . Online lenders like SoFi are so appealing to millennials because of their online tools and fast closing times. Borrowers feel much more in control of their financial status due to the DIY system provided by online lenders. This freedom is what banks are unable to match.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

U.S. Supreme Court Finds in Favor of Homeowners

In 2007, a couple from Minnesota, Larry and Cheryl Jesinoski, refinanced their mortgage with Countrywide. Exactly three years later the Jesinoskis tried to rescind the loan by writing a letter to Bank of America Home loans, which purchased Countrywide during the housing crisis. This meant that Larry and Cheryl, through the Truth in Lending Act, had the right to cancel their mortgage as long as they did so within three years after the transaction was completed.

Yet, Bank of America tried to block the rescission and the Court of Appeals for the Eighth Circuit ruled in favor of the bank, stating that the borrower must not only give notice but also file a lawsuit within three years. However, on Tuesday Jan 13, 2015, the U.S. Supreme Court ruled in favor of the couple, with Justice Antonin Scalia interpreting the law, stating that it without a doubt requires only a notification of rescission within three years and not litigation. Please note that when a loan is rescinded, however, the homeowners often have to give the mortgage loan funds and fees back to the bank or lender.

Contact Philadelphia Foreclosure & Mortgage Modification
Attorneys Shaffer & Gaier

To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

National Mortgage Settlement Review Prompts Dual – Tracking Discussions With Banks

State and federal regulators are considering whether or not to impose additional restrictions on the mortgage practices of five of the nation’s largest banks. State attorneys and the U.S. Department of Housing and Urban Development have already discussed with two big banks about further restrictions, and these discussions are the result of “complaints related to provisions in last year’s multi-state mortgage robo-signing settlement between dozens of government agencies and Bank of America, J.P. Morgan Chase, Wells Fargo, and Citigroup and Ally Financial”. This settlement has delivered tens of billions of dollars in mortgage aid, and while the companies have made strides in reforming servicing practices, much more improvement is still needed. The fact is, the relief is having no effect on keeping most distressed homeowners in their homes.

Officials claim that they are considering a change in the current policy — they want banks to “halt foreclosure proceedings when borrowers first apply for loan modifications and provide basic information”. With this halt, officials hope to speed decisions on loan modifications and limit the amount of fees imposed on distressed borrowers. While it is important for borrowers to get an answer on their loan, and whether the answer is “yes or no”, the borrower should feel relieved to escape the months-long limbo that often accompanies the request for a loan modification. One official has even said that “delays in processing mortgage modification requests are the number one problem in the servicing today”.

In the new policy, Joseph Smith, the head of the Office of Mortgage Settlement Oversight and his team hope to implement up to four new tests that would grade the banks’ compliance. Two of these tests would “test the effectiveness of banks’ implementation of a requirement to provide a ‘single point of contact’ for distressed borrowers looking to avert foreclosure” (Huffington Post, 1). The third test involves modification requests and the fourth grades how well the banks upgrade borrowers’ account information. It is a tall order, in our view, to get the big banks to get anything done quickly.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

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