Beware of Deceptive Mortgage Deals

May 20, 2013  
mortgage lending news

Consumer Reports warns the public to be on the alert for fraudulent home refinance offers promising rock-bottom interest rates and easy approval. Signs that an ad may be too good to be true include phrases such as "guaranteed approval" or "low fixed rates." As part of an investigation into deceptive mortgage ads, the Federal Trade Commission collaborated with the Consumer Financial Protection Bureau to sift through hundreds of ads and identify about 30 businesses that may be violating the law -- which dictates that companies cannot charge consumers any money before they have offered loan terms in writing and the borrower has accepted them. According to Consumer Reports, paying down debt and correcting any credit errors improve the odds of getting a good loan from a legitimate source.
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