|
MySuq.com is proud to be affiliated with Ameriquest Mortgage
Ameriquest Mortgage Company is one of the nation's oldest and largest home-equity lenders. We are proud of our history of making credit accessible to homeowners, helping customers gain a fresh financial start, realize a dream and make homeownership a reality.
To further these goals, Ameriquest has held extensive discussions with the Consumer Mortgage Education Consortium (CMEC)—a group that includes the Leadership Conference on Civil Rights, the National Fair Housing Alliance and the National Association of Neighborhoods—and the Association of Community Organizations for Reform Now (ACORN), the National Community Reinvestment Coalition (NCRC) as well as many other community organizations on how to expand the availability of mortgage credit to all markets and how to combat unfair mortgage lending practices.
To achieve these shared goals, Ameriquest is committed to the following Best Practices.
Servicing Best Practices
We service the loans we originate, so our relationship with our customer does not end when the loan is closed. Rather, a new and ongoing relationship begins. We are committed to responsible lending and provide the highest degree of quality and ethical service to our customers during the servicing relationship. In short, we strive to put the "service" back in loan servicing.
Ameriquest's servicing combines old-fashioned, person-to-person communication and modern technology. This unique approach allows us to understand and respond quickly to customer needs.
1. BROAD HOME-RETENTION STRATEGIES
We want customers to stay in their homes. Specially trained home retention-associates evaluate all loans before the foreclosure process begins to ensure that a variety of workout options have been explored. Their sole responsibility is to make home-retention strategies work.
2. IMMEDIATE PROCESSING OF CUSTOMER PAYMENTS
We process all customer payments at our state-of-the-art payment processing center, which ensures timely, accurate processing of payments on the day they are received—a standard long enforced by Ameriquest. In-house processing prevents unnecessary late charges and eliminates errors from third-party handling of customer funds.
3. ENCOURAGING CUSTOMERS TO USE ESCROW ACCOUNTS
We encourage customers to use escrow accounts for taxes and insurance so they can spread the annual amount due over 12 months. We explain our escrow service to customers during the loan-origination process and again during the welcome call and encourage customers to sign up for the program. There is no charge to establish or cancel this service.
4. SERVICES THAT ARE GEARED TOWARD CUSTOMER SATISFACTION AND CONVENIENCE
While many customers prefer to talk with one of our associates, we have also implemented a comprehensive, automated information system that provides customers access to their loan information 24 hours a day, seven days a week. Customers have the flexibility to obtain information and perform transactions over the Internet and through our easy-to-use, interactive voice-response system, which supports English- and Spanish-speaking customers
* We offer flexible options for making payments, such as recurring electronic debit, via our
secure Web site, by phone or at any of our nation-wide branch locations.
* Requests for payoff statements are processed within 48 hours of receipt.
Because our customers' opinions matter, we conduct a satisfaction survey to collect data about why customers contact us, whether their experience was satisfactory and what we can do to improve our practices. The results are compiled and reviewed by senior management to continuously improve our services.
5. FAIR COLLECTION PRACTICES
If customers become delinquent, we include on their billing statements the identity of a credit-counseling service and a statement encouraging the customer to seek assistance. We offer extensive workout and repayment plans in an effort to help customers bring delinquent accounts current.
6. REPORTING OF CUSTOMER PAYMENT HISTORIES TO CREDIT BUREAUS
We report our customers' payment history to major credit reporting agencies on a monthly basis. Customers who make their payments on time can benefit from an improved credit history in subsequent credit transactions.
7. FREE CONSUMER CREDIT COUNSELING
In the fourth quarter of 2003, Ameriquest will pay for consumer credit counseling services for delinquent customers provided by a non-affiliated, non-profit consumer credit counseling agency. Customers who accept this offer can learn new techniques for managing their financial affairs and can improve their financial situation without having to pay for a debt-management plan.
8. RESOLVING CUSTOMER CONCERNS IS A TOP PRIORITY
Trained Customer Care associates are available to respond to customer inquiries and are empowered to address customer concerns. Our associates' goal is to resolve customer concerns during the first call in support of our servicing motto "One Call Does It All." If additional research is necessary, the associate will work with the customer until the issue is resolved.
9. MANY SERVICES WE OFFER OUR CUSTOMERS ARE FREE
While many loan servicers impose fees for routine transactions and services, we take a different approach. Our customers benefit from many free services, including:
* Obtaining copies of loan documents
* Generating and providing a payment history
* Generating and providing a verification of mortgage
* Initiating or cancelling an escrow account
* Participating in an automatic recurring payment plan
* Making a payment on our Web site even when a loan is past due
* Faxing documents to customers
10. NEW CUSTOMERS RECEIVE A WELCOME CALL BEFORE THEIR FIRST PAYMENT IS DUE
We make welcome calls to new customers before their first payment is due. During these calls, we review loan terms and answer any questions.
11. LENDER-PLACED INSURANCE IS A LAST RESORT
We make multiple attempts to contact customers whose hazard insurance has lapsed and wait a full 60 days after the lapse of customers' policies before obtaining a required insurance policy. Even after the policy is placed, we take every opportunity when speaking with customers to encourage them to obtain their own policy.
Ameriquest makes no commission on lender-placed insurance. Any commission that would have been earned is used to reduce the cost of the customers' premiums.
12. TRACKING QUALITY IS A CORNERSTONE TO DELIVERING UNPARALLELED CUSTOMER SERVICE
Ameriquest has developed and implemented strict quality-control measurements for customer-relationship positions. Associates in key customer-relationship positions receive a monthly quality scorecard that we use to monitor and evaluate our associates. We reward associates who are commended by our customers for providing superior service or consistently performing above expectations.
13. CARING ABOUT THE COMMUNITIES WE SERVE
We inspect the condition of all properties and arrange for maintenance, if necessary.
14. TRAINING IS THE FOUNDATION TO QUALITY CUSTOMER SERVICE
Customer Care associates, payment counselors and Home Retention specialists receive specialized training because of the high customer-contact nature of their jobs. Associates in these positions receive approximately 75 hours of training in their first month of employment, which includes the basics of the mortgage industry, an introduction to our culture, customer service standards, regulatory compliance and systems training.
Beyond new-hire training, we regularly bring in outside specialists in areas such as bankruptcy and foreclosure to provide on-site training on timely topics.
Origination Best Practices
We believe consumers should (1) receive clear and timely disclosures of the terms of a proposed loan and their options; (2) have adequate time to evaluate and negotiate those terms and; (3) have the ability to obtain the advice of independent advisors as to whether the loan is one they should accept.
1. PROVIDING CUSTOMERS A COPY OF THEIR CREDIT REPORT
Beginning in October 2003, we will provide in the Early Disclosure Package a free copy of each customer's credit report along with a brochure explaining credit scores and how customers can ensure their credit information is accurate.
2. CLEAR AND TIMELY DISCLOSURE OF LOAN TERMS AND CONDITIONS
Ameriquest does not tolerate misrepresentation of the terms and conditions of a loan and strives to ensure that our customers are fully informed about the transactions they are considering. To achieve this goal, our Early Disclosure Package is automated to avoid manual processing errors, and centrally generated to ensure the package is sent to applicants within three business days from when their loan application is received.
In addition, Ameriquest voluntarily provides customers with disclosures not required under any federal or state law. Special disclosures are given in the Early Disclosure Package and at closing so customers better understand the impact of their loan decision, the options available to them and terms of their loan with us. Below is a list of these disclosures.
* Understanding Your Options Regarding Prepayment Charges
Explains to customers their option to include a prepayment charge on their loan in exchange for a lower interest rate. Prepayment charges, when applicable, apply only to prepayments occurring within the first three years of a transaction.
* Understanding Your Options Regarding Interest Rates and Discount Points
Illustrates the relationship between interest rate and discount points and explains to
customers their options regarding interest rate and discount points.
* Understanding Your Loan
Explains the risks of borrowing against one's home; contains cautionary tips regarding
borrowing money; explains the right to cancel, where applicable; advises customers that
better terms may be available and encourages them to shop for a loan with other lenders
before completing a loan transaction with us; encourages customers to consult a third-party, HUD-certified credit counselor and provides a toll-free number to locate such a counselor.
* Interest Rate, Payment Due, Fees Paid, and Prepayment Charge
Explains any adjustable interest rate feature; the monthly payment amount, including
escrows; the loan fees (including discount points) and third-party charges; whether the loan contains a prepayment charge; and the maximum dollar amount of any prepayment charge.
* Acknowledgement of Final Loan Terms
Shows the difference, if any, between the final loan terms and the Good Faith Estimate
provided in the Early Disclosure Package.
* One-Week Cancellation Period
Explains that Ameriquest provides a one-week cancellation period on refinance transactions to allow additional time for customers to read and understand the terms of their loans. Customers may cancel at no cost and receive a refund of any amounts they have paid.
3. DETERMINING WHETHER THE CUSTOMER HAS THE ABILITY TO REPAY OUR LOAN
Although the value and condition of the real property always play into a mortgage lender's loan decision, we do not lend based on the "equity" in the property alone.
Ameriquest has developed an automated underwriting system to ensure consistent evaluation of each customer's ability to repay based on factors such as income, credit score, mortgage payment history, debt ratio and previous bankruptcy and foreclosure.
4. PROVIDING CUSTOMERS ADEQUATE TIME TO EVALUATE THE FINAL,
WRITTEN LOAN TERMS—A ONE-WEEK CANCELLATION PERIOD
Where permitted by state law, Ameriquest provides customers with a full seven calendar days to review their loan terms, even though only a three-day cancellation period is required by federal law. This innovative practice allows customers additional time to evaluate their final, written loan terms, to seek the assistance of independent credit counselors and to shop for another loan. Ameriquest extends this one-week cancellation period to customers refinancing their owner-occupied mortgage loans.
5.
PROHIBITED PRACTICES—BALLOON PAYMENTS, NEGATIVE AMORTIZATION AND MANDATORY ARBITRATION CLAUSES; SINGLE PREMIUM CREDIT LIFE INSURANCE POLICIES
We have never
* Offered loans with balloon payments or negative amortization,
* Included mandatory arbitration clauses in our loan documents, or
* Sold single-premium credit insurance.
6. REASONABLE POINTS AND FEES
Ameriquest does not originate loans defined as "high cost" under the Home Ownership and Equity Protection Act of 1994 (HOEPA) or state predatory lending laws. On average, our standard processing fees are less than 1% of the loan amount and we pass through third-party fees with no mark-up. Discount points are limited to a maximum of 5% of the loan amount, or the state limit, if lower.
7. RISK-BASED PRICING
Our system-driven, risk-based price model determines a consistent, benchmark price offer based on the overall risk profile of a loan transaction. The benchmark price generated from the price model cannot be increased by sales staff. Customers can choose a lower interest rate by paying discount points or pay fewer discount points in exchange for a higher interest rate. Customers can also choose a loan without a prepayment charge for a higher interest rate or lower their interest rate by agreeing to a loan with a prepayment charge. Standard pricing helps ensure equal treatment regardless of customers' sophistication and literacy.
8. MARKETING
We market to people who are likely to want a mortgage loan from us and have the ability to repay such a loan. Our marketing efforts support equal lending opportunities to all who qualify and do not target consumers based on race, color, national origin, religion, marital status, familial status, sexual preference, gender, age or handicap. We do not sell customer information to third parties for marketing purposes.
9. REFINANCING OF EXISTING CUSTOMERS—FLIPPING IS PROHIBITED
When a customer contacts us to refinance or requests a payoff statement through another lender, we work with the customer to retain our relationship. Ameriquest, however, does not solicit existing customers within the first 24 months of their loan.
10. PROPERTY VALUATION
We seek to ensure accurate property valuations through the use of licensed appraisers and cutting-edge technology. Appraisals must be full appraisals, with an interior inspection performed in accordance the Uniform Standards of Professional Appraisal Practice. To ensure compliance with these requirements, we maintain lists of approved appraisers, perform an automated review of all appraisals prior to funding, and audit a random sample of appraisals on a monthly basis.
11. CONSUMER MORTGAGE EDUCATION AND OUTREACH
Ameriquest is committed to national education programs to help consumers make better-informed mortgage loan decisions. Among others, we have partnered with the following organizations to promote responsible lending practices and expand opportunities for customers:
* Leadership Conference on Civil Rights (LCCR)
* Association of Community Organizations for Reform Now (ACORN)
* Greenlining Institute
* National Community Reinvestment Coalition (NCRC)
* National Fair Housing Alliance (NFHA)
* National Association of Neighborhoods (NAN)
* Los Angeles Center for Law and Justice
* Citizens for Community Improvement (CCI )
Ameriquest was one of two lenders invited to participate in Freddie Mac's Don't Borrow Trouble consumer-awareness program. We continue to participate in events sponsored by this program across the country to help educate the public about the mortgage process and steps they can take to protect themselves from predatory lending.
We partner with various organizations to offer rescue programs to victims of predatory lending. Ameriquest is also working on programs supporting first-time home buyers in achieving the American dream.
|
