California Lending Notice
THE HOUSING FINANCIAL DISCRIMINATION ACT OF 1977 FAIR LENDING NOTICE
It is illegal to discriminate in the provision of or in the availability of financial assistance because of the consideration of:
- Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required to avoid an unsafe and unsound business practice: or
- Race, color, religion, sex, marital status, domestic partnership, national origin or ancestry.
It is illegal to consider the racial, ethnic, religious or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms and conditions, to provide financial assistance.
These provisions govern financial assistance for the purpose of the purchase, construction, rehabilitation or refinancing of one- to four-unit family residences occupied by the owner and for the purpose of the home improvement of any one- to four-unit family residence.
If you have any question about your rights, or if you wish to file a complaint, contact the management of this financial institution or the Department of Financial Protection and Innovation at one of the following locations:
Notice to Inquirers and Applicants
You have a right to submit a written application for a mortgage loan or a home improvement loan or to request written information concerning typical loan terms that we are currently offering on mortgage loans and home improvement loans. It is illegal to establish a minimum mortgage amount of more than $10,000.00 or a minimum home improvement loan of more than $1,000.00. It is illegal to deny a loan or vary the terms and conditions of a loan because of the racial or ethnic trends or characteristics of the neighborhood or the age of the structure, but not because of its physical condition. If your application for a loan is rejected, you have a right to a written statement of the reason for the rejection. If you are granted a loan but the amount required for down payment, the interest rate, term to maturity, application procedure, or other terms or conditions of the loan vary from terms or conditions offered in other neighborhoods, you have a right to a written statement of the reasons for the variation. The rights described in this notice are set forth in and limited by Act No. 135 of the Public Acts of 1977. If you believe that your rights under this act have been violated, you should contact the Office of Financial and Insurance Regulation of the Michigan Department of Energy, Labor & Economic Growth.
LENDING CRITERIA FOR THE STATE OF MICHIGAN
It is Cornerstone Home Lending, Inc.’s policy to consider the creditworthiness of an applicant upon submission of a completed loan application. The general factors used for establishing creditworthiness include but are not limited to:
- The applicant's income must be sufficient to repay the loan according to its term;
- Debt ratio: All monthly payments including the loan being considered, divided by gross income equals the debt ratio;
- The applicant's past credit history with credit grantors must be satisfactory;
- The applicant's job history and time lived at current address must illustrate stability;
- Sufficient collateral to cover the loan; and
- The applicant's established credit rating.
Market value is the most probable price property should bring in a competitive and open market under all conditions for a fair sale, assuming the price is not affected by undue stimulus. Cornerstone Home Lending, Inc. will consider the market value of proposed property when evaluating loan applicant's request.
INTEREST RATES (Annual Percentage Rate)
Rates are based on the mortgage market in Michigan and the Federal National Mortgage Association (Fannie Mae) market. Please call Cornerstone for the current rate.
The loan programs and terms we offer are driven by investor guidelines.
A written certified appraisal is required on all mortgages. The objective of an appraisal is to determine if the collateral is of sufficient value to cover the requested loan. It is important to note that not all loan programs require an appraisal. Please consult your mortgage professional.
VERIFICATION OF FUNDS
Cornerstone Home Lending, Inc. reserves the right to verify funds which are indicated to be used for the earnest money deposit, down payment and closing costs, if applicable.
PROPERTY IN FLOOD PLAIN
Loans secured by property in a flood plain area must meet the following requirements: (Includes Mobile Homes)
The community must be participating in an approved flood program;
Insurance must be obtained in the amount equal to the loan balance or the maximum amount available; and
A copy of the insurance policy must be submitted to the credit union on or before closing.
CO-SIGNER / GUARANTORS
The following guidelines at minimum will be used when evaluating a co-signer or guarantor on a loan:
- Past and present credit history;
- employment record;
- length of residence;
- debt ratio.
All loan documents and policies will conform to the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Housing Administration (FHA), Veterans Affairs (VA) or United States Department of Agriculture Rural Development (USDA) standards as much as possible. A Homeowners Insurance Policy, naming the credit union as loss payee is required on all real estate loans. The amount of insurance must be sufficient to pay the mortgage balance off and cover the value of the home. A Title Commitment will be performed on all estate loans prior to closing. A Title Insurance Policy must also be obtained.
MORTGAGE CLOSING COSTS
We will quote your costs, when all the specifics regarding your mortgage is known.
Texas Mortgage Banker Disclosure
Figure: 7 TAC 81.200(c)
"CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV."
COMPLAINTS REGARDING THE SERVICING OF YOUR MORTGAGE SHOULD BE SENT TO THE DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TX 78705. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 877.276.5550.
A complaint form and instructions may be downloaded and printed from the Department’s website located at www.sml.texas.gov or obtained from the department upon request by mail at the address above, by telephone at its toll-free consumer hotline listed above, or by email at [email protected].