Yesterday, you may have heard that Fed Chairman Ben Bernanke spoke of his concerns for the American borrower.  He stated that with the explosion of financial choices, consumers must sharpen their assessment of whether certain mortgages or other investment products makes sense for them.

This comes on the heals of a 58-page report from the Federal Reserve Bank of Chicago that shows that Americans need to seek the services of professional mortgage planners to assist them in properly integrating their mortgage into their overall financial and investment plans.  For that, we recommend seeking a Certified Mortgage Planning Specialist (CMPS) in your area to ensure your mortgage planner has gained enough knowledge to serve your needs. 

"Some evidence, including recent Federal Reserve research on consumers holding adjustable-rate mortgages, suggests that awareness could be improved, particularly among borrowers with lower incomes and education levels," Bernanke said.

Bernanke asked, among other things, whether borrowers are aware of the terms and conditions of their loans and if consumers are sufficiently well-informed to be wary of potentially misleading marketing tactics and whether they can shop effectively among lenders.  The National Mortgage Advocate (NMA) was developed to provide education, guidance and advice to assist customers in this way. 

We are glad to see that the Federal Reserve Banks are starting to understand what we have been advocating for years...Proper education, research, guidance and advice is the key to the success of the American borrower and seeking a professional mortgage planner, particularly a CMPS designee, is key to ensuring that success.

With numerous unscruplous lenders and ill-qualified mortgage personnel, the consumer needs to find a way to ensure they are being treated fairly and getting the best value for their money.  For more information on the NMA, please visit our website or contact us.