Survey finds many borrowers say full disclosure of fees is priority

A majority of Americans desire a full disclosure of fees before they commit to any type of borrowing plan.

Previously mentioned in this blog is how the Consumer Financial Protection Bureau is working on a proposal that will simplify disclosure forms for borrowers by creating one uniform document. This will have a major effect on prospective homeowners as a survey reports that Americans find a full disclosure of fees to be a top priority when searching for a home loan.

The website Mortgagemarvel surveyed 2,214 Americans over the age of 18 and discovered that one quarter say that disclosure is a major concern and that anonymity is rated second with 20 percent of respondents listing it as a desired quality for lending.

This is important for lenders to take into account, knowing that a majority of individuals looking to purchase a home want to know upfront about any fees. As such, investing in loan management software will help create an accurate payment plan fine-tuned to the borrower.

In addition, the shrinking of Fannie Mae and Freddie Mac's portfolios could cause thirty-year, fixed-rate mortgages to become a rarity.

Juli Anne Callis, president and chief executive of the National Institutes of Health Federal Credit Union in Rockville told the Washington Post that a majority of the mortgages of that kind her company provides are sold through partnerships to Fannie and Freddie. 

"Without them, we would have $15 million to $20 million in mortgage needs that we could not fulfill every month," Callis said. "Frankly, anything that's 20 years or longer, we wouldn't be able to keep on the books in this low-rate environment."

Loan amortization software will also help borrowers design a payment plan that is acceptable to a prospective borrower and that will not harm themselves. This way, both parties will be satisfied over the created financial plan.