LenderFi’s Commitment to Meeting Requirements as an Upfront Mortgage Lender (UML)
Lenderfi.com has been awarded the exceptional UpFront Mortgage Lender (UML) certification. An UpFront Mortgage Lender provides mortgage consumers with information that will better assist them to make informed decision before applying for a mortgage. It provides assurance that a consumer will be given a fair treatment during the period after they apply through closing.
In order to be certified, Lenderfi.com has met all the UML requirements that are listed below. Read on to learn how Lenderfi.com can help you with your mortgage needs.
Requirement 1: A UML Must Provide Quick Access to the Market Niches it Prices Online. The United States home loan market in the US is divided into many hundreds of market niches, and no single lender serves them all. Customers need a quick way to determine whether a particular lender prices the niche in which that customer lives. If not, the customer can go elsewhere without wasting time.
LenderFi’s Market Niches: LenderFi Market Niches
Requirement 2: A UML discloses all lender fees, including points, origination fees, and any fixed-dollar fees, and guarantees them to closing. This assures borrowers that price information is complete, and that new fees won’t be added or existing ones increased after they have committed to working with the selected lender.
Requirement 3: A UML discloses all third party fees with the best estimates possible, indicating which, if any, are guaranteed by the UML.
Requirement 4: A UML Provides a Clear Explanation of its Lock Requirements.
View LenderFi’s rate lock policy
Requirement 5: A UML discloses all the information about its ARMs needed by customers to make intelligent decisions. Customers need information on potential ARM performance – what will happen to the interest rate and mortgage payment under assumptions about future interest rates that make sense to the customer. LenderFi discloses the index and margin used, as well as the interest rate caps, on all ARM’s we offer. Simply search rates and click on “view” under “loan details” for the loan program and interest rate in which you are interested.
Requirement 6: A UML informs borrowers if its loan originators are compensated in a way that gives them a financial incentive to overcharge the borrower. Loan originators often benefit financially if they can induce the borrower to pay more than the prices posted by the lender or broker. Where this is the case, the borrower ought to know about it. LenderFi’s originator compensation is in strict compliance with the Dodd-Frank Act and the SAFE Act; MLOs are duly licensed and compensated via a base salary along with flat compensation against the number of units of closed loans. This practice eliminates any incentive for originators to influence loan amounts or fees for monetary gain.