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Mortgage Lending
Frequently Asked Questions
- Where can I get credit counseling?
- What's a FICO and how can I get one?
- I'm having a hard time paying my mortgage and credit card bills. What should I do?
- Is there help for people facing foreclosures?
- What is the Making Home Affordable Plan?
- How do I know what financial institution holds my loan?
- How can I determine who is a legitimate foreclosure prevention specialist?
Contact the National Foundation for Credit Counseling to find a local credit counselor to help you develop a budget and a plan for paying down debt. To reach NFCC, call (800) 388-2227 or visit www.nfcc.org. One word of caution: Be wary of anyone who claims they can "fix" your credit. The only thing that can fix your credit report is time and a positive payment history. ABA Education Foundation's Help Contacts.
2. What's a FICO and how can I get one?
Your FICO score is your credit score. Your credit score determines whether you qualify for a loan and how much interest you will pay on credit cards, auto loans, mortgages and other types of loans. Your FICO score is comprised of your payment history, how much you owe, the length of your credit history, new credit and the types of credit used. FICO credit scores above 700 are very good and a sign of good financial health and scores below 600 could be a sign of financial stress. Visit www.myFICO.com to get your FICO score.
3. I'm having a hard time paying my mortgage and credit card bills. What should I do?
The first step is to contact your credit card or mortgage provider. Most creditors are willing to work out alternate payment plans, especially in emergency situations such as job loss or major illness. Once you've informed your lender, contact the National Foundation for Credit Counseling to find a local credit counselor to help you develop a budget and a plan for paying down debt. To reach NFCC, call (800) 388-2227 or visit www.nfcc.org. One word of caution: Be wary of anyone who claims they can "fix" your credit. The only thing that can fix your credit report is time and a positive payment history. ABA Education Foundation's Help Contacts.
4. Is there help for people facing foreclosures?
Yes, the first step is to contact your lender. About half of the people entering into foreclosure have not contacted their lender. Lenders want you to keep your home and many will work with you to do so. You can also contact HOPEnow, an alliance of financial service professionals or the Homeownership Preservation Foundation (888-995-HOPE) which offers free foreclosure prevention counseling. There is additional help for homeowners whose mortgages are held by either Fannie Mae or Freddie Mac through the Making Home Affordable Program.
5. What is the Making Home Affordable Program?
The program offers a variety of modification options for struggling homeowners whose mortgages are held by Fannie Mae or Freddie Mac. The Making Home Affordable Program also offers solutions for borrowers whose loans are insured or guaranteed by the USDA, Department of Veterans Affairs and the Federal Housing Administration. Visit the Making Home Affordable Program site for more information.
6. How do I know what financial institution holds my loan?
Contact your mortgage servicer, call (888) 679-6377 or go to www.mers-servicerid.org to find out the institution that holds your loan.
7. How can I determine who is a legitimate foreclosure prevention specialist?
Education or knowing what to watch for and where to turn for help is vital for families struggling to remain in their homes. Details of the transaction, along with any promises, should be provided up front and in writing. Fraudsters are seizing the moment and mortgage scams are on the rise. In response the Federal Reserve Board developed some tips to help consumers avoid foreclosure scams. Federal Reserve Board's Tips.
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Questions? Contact the ABA Education Foundation.
