is this ‘lending done right’?

(Ed. Note January 26th)
This is the second time I have done this post. I wrote a great 250-word post, published it, and now it’s history! Gone! I hit the delete button by accident! Poof! So if you read this before and it’s different, don’t be surprised!

There are tons of loan websites out there, but few of them really achieve the same level of success in incorporating both a personal and interactive element as does. There are several good features that really help to make it an online loan center with a difference. It’s ethical lender policies, loan calculators, and articles really help to inform the potential clients.

But perhaps the most interesting aspect of’s launch this week is its focus on ethical lending with its Borrowers Bill of Rights. This focus is on both aspects of the lending proposition, the borrower’s rights, and the lender’s obligations:

1. Competitive Rate Quote
2. Rate Quote That Won’t Change
3. Accurate Explanation of Credit Status
4. Fair Fees
5. Upfront, Full Disclosure of All Lending Fees
6. Accurate Closing Date
7. Immediate Notification of Underwriting Issues
8. Confirmation of a Rate Lock
9. Exceptional Customer Service
10. Advocacy With Lender/Underwriter
11. No Surprises at Closing
12. Help After the Closing

There are many kinds of costs that are included in mortgages, not all of them are usually clearly itemised. And in some cases, these costs can be hidden within the loan amount. Most borrowers are fixed on the monthly cost of the loan, as I was when I got my mortgage, rather than the actual cost, as a measure of its affordability, these costs can be easily overlooked when you are negotiating a mortgage.

With all the trouble over ARMs missellling, I think it’s important that someone should stand up for ‘ethical lending’ as there are too many ways for borrowers to face unexpected charges. In fact, it’s only when the borrower’s start to experience borrowers’ remorse that they discover the hidden charges and costs. And the costs run from 1% up of the loan amount. That is not chump change. This lending policy, coupled with the links to ethical lenders, should help borrowers avoid some of the unethical behaviors.

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