Housing Bubble

Texas Realtors, Fannie Mae fight predatory lending

March 18 , 2003

AUSTIN, Texas, /PRNewswire/ -- The Texas Association of REALTORS® and Fannie Mae are fighting predatory lending and expanding homeownership opportunities with their new Borrow With Confidence campaign.

Research shows that most Americans, and particularly minority Americans and new immigrants, hold misconceptions about the mortgage process that may prevent them from seeking a loan from conventional lenders, putting them at high risk of ending up with unfavorable terms.

According to Fannie Mae's 2002 National Housing Survey, 39 percent of all adults surveyed did not know that lenders aren't required by law to give homebuyers the best possible rates on loans; 31 percent did not know that consumers don't need to have a perfect credit rating to qualify for a mortgage; and 44 percent did not know that buyers can qualify to purchase a home with less than 20 percent down.

Emerging Markets: Seize the Opportunities is a new two-hour course for real estate professionals and cornerstone of the Borrow With Confidence campaign. Emerging Markets is approved by the Texas Real Estate Commission for two hours mandatory continuing education credit (course number 02-00-094- 2684; provider number 0001).

The first Emerging Markets courses were conducted January-March with local REALTOR® associations in Austin, Dallas, San Antonio, El Paso, Corpus Christi, and Houston. Additional courses are already scheduled for Fort Worth and Midland.

The Borrow With Confidence campaign and Emerging Markets course are designed to:

Harness the power of Texas REALTORS® to promote consumer awareness about the benefits of seeking out responsible lenders and shopping for the best mortgage.
Debunk many of the myths that surround the homebuying process.
Ensure that REALTORS® are knowledgeable about low-cost mortgage financing options; and
Develop relationships with responsible lenders that offer low-cost flexible mortgage loans and are committed to the principle of offering potential homebuyers competitive rates.

Participating Texas REALTORS® receive lists of lenders offering these mortgage products, along with information about local counseling agencies that help borrowers who may need additional help preparing themselves for the homebuying process.

"REALTORS® spend the most time of any professional with prospective homebuyers and often discover firsthand the obstacles a homebuyer will face when shopping for a mortgage," said George Stephens, chairman of the board, Texas Association of REALTORS®. "By understanding the many options conventional lenders have for addressing issues like past credit blemishes and the lack of funds for downpayment, Texas REALTORS® can help homebuyers find competitive rates."

Source: Texas Association of REALTORS®