SOURCE: Mortgagebot


September 29, 2009 10:00 ET

Mortgage-Related Changes to Federal Truth in Lending Act Take Effect October 1

Consumers Can Be Assured of Complete, Immediate, and Accurate Rate, Fee, and Payment Information When Shopping Online for Mortgages at

MEQUON, WI--(Marketwire - September 29, 2009) - Recent updates to Regulation Z (Reg Z) of the Federal Truth in Lending Act that take effect on October 1 are designed to provide consumers with enhanced protections from unfair and deceptive business practices by ensuring that credit terms are more clearly disclosed. The new regulations are designed to make it easier for consumers to understand and compare mortgages, consumer loans, and credit cards.

"The new Reg Z changes are important because they can help to better protect borrowers from deceptive and unfair business practices, but the regulations also create significant technology challenges for lenders," said Rick Allen, Product Manager for Mortgage Marvel (, an industry-leading, online mortgage-shopping service. "The new regulations are intended to help consumers get the full disclosure they need to knowledgeably enter into a mortgage transaction with a solid understanding of loan terms, costs, and requirements. However, not all lenders have the technology in place to provide the immediate, accurate, and regulatory-compliant information that consumers need when shopping for a mortgage online."

The Reg Z changes mean that lenders are subject to new, more stringent standards of responsible lending, including additional disclosure requirements and the prohibition of certain advertising practices. For example, mortgage-related ads must now include an enhanced presentation of the loan payment stream for mortgages with payments that can change (such as adjustable-rate mortgages, or ARMs). For ARM-related ads presented online, lenders must display interest rate, number of loan payments, and the amount of each payment for the term of the loan -- based on an index and margin that were in effect within 30 days of the ad.

"Mortgage consumers should know that some lenders who display rates on certain Web sites will find it difficult to comply with these new requirements," Allen noted. "Each lender must ensure that the payment streams for their loan products are not only properly presented -- but that they are updated every 30 days."

"The changes to Reg Z will give borrowers a more level playing field," Allen noted, "but lenders must have the right technology in place to effectively bring that benefit to the marketplace. And we're pleased to be able to say that Mortgage Marvel provides a mortgage-shopping service that consumer borrowers can trust to be fully compliant with the new regulatory changes."

According to Allen, that's because Mortgage Marvel -- like no other online mortgage-shopping service -- creates all of its quotes in real time, through its unique, direct data integration with the "live" loan-product databases of every Mortgage Marvel lender nationwide.

Allen said that while some unscrupulous lenders may still try to "game" the system for their own benefit, the new changes can help reduce abusive practices and give borrowers the information they need to make better-informed decisions.

"Every Mortgage Marvel lender has the latest regulatory-compliance technology in place," he said; "which is why consumers can use the service with confidence."

About Mortgage Marvel

Mortgage Marvel ( is the only nationwide, online mortgage-shopping service that instantly delivers accurate, real-time quotes from multiple lenders in complete privacy. The award-winning Mortgage Marvel enables consumers to quickly get mortgage quotes from trusted lenders by entering as few as four key pieces of non-sensitive information. In just seconds, Mortgage Marvel presents free, accurate, up-to-date mortgage rate and fee quotes from multiple lenders in an easy-to-understand display that is fully compliant with all of the latest government regulations. But unlike other online mortgage-shopping services, Mortgage Marvel also enables borrowers to link directly to their preferred lender -- where they can complete a mortgage application and get approved with full disclosures, all in 20 minutes or less.

Mortgage Marvel is a registered trademark of Mortgagebot LLC.

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