Consumer Reviews and Reports

Although some banks are tightening up home loan eligibility requirements, there are a lot of affordable mortgage loans and lenders to consider.

Most homeowners are looking for affordable mortgage lenders. In this case, they need to have realistic expectations first before approaching a mortgage lender. An online source is helpful for homeowners. In that way, they will be able to calculate and gain ideas on how much they can afford to spend on a home.

It is always safe to stay within your budget when taking a home loan. Information about mortgage is important for homeowners. Traditional mortgages requires payments on both principal and interest. Alternative mortgages such as interest-only and payment-option adjustable rate mortgages allow for lower payments initially. Some mortgage lenders may tempt homeowners to buy a larger home loan because it’s beneficial on their part. Although it’s tempting, this practice have been stopped by The Federal Reserve Board’s advised. Homeowners are unable to make a payment because the entire loans need to be paid back and homeowners who fails to make payments on large mortgage faces foreclosure.

Some traditional mortgages can be too expensive for some homeowners too. That is why The Federal Reserve Board recommends either the fixed rate mortgage of a fully amortized adjustable mortgage and negotiate to get the best possible terms. Homeowners should shop around and search for the best mortgage lenders that best fits their needs and budget.

A direct lender mortgage vendor with more than 24 years in the business, Quicken Loans Inc. is introducing what may be considered as the first electronic signature network for high-value B2C transactions.

As of spring 2009, the Michigan-based mortgage expert has given loan applicants the possibility of using electronic signatures to complete and submit mortgage applications as soon as being preapproved online, while neither the usual paperwork nor ink signatures are required.

Since introducing electronic signatures in other consumer-related spheres failed, Quicken Loan’s process does not require consumers to download digital certificates use private keys, or use specialized signing software to authenticate themselves.

To make the process easier and less time-consuming, Quicken Loans combined information provided by the consumer during the process of application for a loan with a unique user name and unique information such as details of an auto loan to attest each user.

The Quicken systems architect who is in charge of the electronic signature implementation, Kevin McCallum, explained, “We are trying to make applying for mortgages as easy as applying for a credit card.” As an online loan and mortgage company, Quicken Loans is trying to completely “virtualize” their work and communication with the customers.

Avivah Litan, an analyst from Connecticut-based Gartner Inc., emphasized that the company’s attempts make it possible for some corporations to finally deal properly through the technical, legal and regulatory issues connected with the use of electronic signatures in high-value consumer transactions. She said, “As far as I know, Quicken Loans is the first application to implement e-signatures in high-value B2C transactions”.

As a matter of fact, the E-Sign law was passed in 2000. However, its adoption has been extremely slow because of uncertainty in authentication methods, in surrounding technology standards, as well as federal and state consumer protection requirements.

Quicken Loans is depending on a server-based electronic signature software package. Known as ‘ApproveIt’ the software was developed by Montreal-based Silanis Technology Inc.

ApproveIt captures and records what the borrower sees, agrees to, clicks on, and signs. The President of Silanis, Tommy Petrogiannis, assures that the information is securely bound to the digital documents as a proof that the everything was done in accordance with all applicable regulations.

The only question left is how such electronically signed documents can be proved, used and declined if challenged in court. McCallum said, “Right now, it is hard to say because there is no case precedent,” he said.