Payment Option ARM Loans Risky Mortgage Company President Disagrees
Released on = October 12, 2006, 9:41 am
Press Release Author = Camelot Marketing
Industry = Financial
Press Release Summary = Payment option ARM loans no riskier than any other home mortgage loan for new home purchase or refinance
Press Release Body = According to Jaime Polanco, President of AmeriVision Mortgage Corporation, payment option ARM loans are no riskier than any other type of mortgage loan.
"It is not the loan that is risky, but how the available choices are utilized by the borrower. These choices could put them at risk," states Polanco.
According to Polanco, Payment Option adjustable rate mortgage ( ARM ) gives the home owner flexibility to decide which of four payment choices to make, including interest only, every month. The program is ideal for home owners that have a fluctuating income such as the self-employed.
"We believe in educating our clients on every aspect of any mortgage loan. Before any of our clients sign the payment option ARM loan documentation they are fully aware of all the benefits and the pitfalls of this type of program."
Bloomberg News recently reported that mortgage lender Countrywide Financial Corp. regularly warns customers about the risks of paying less than the interest due on loans offering that option.
Countrywide Chief Executive Angelo Mozilo reached out to borrowers by calling them personally as part of a \"little experiment\" to understand the reasoning behind making only minimum payments on pay-option loans.
Polanco continues, "According to the news report Mozilo said \"What we\'re finding out is that they\'re pretty smart. It\'s like voters: Individually they\'re sort of idiots, but collectively they seem to make the right decisions.\" I could not believe what he was saying about his customers."
"As a mortgage professional it is my job to answer all consumer questions. Just because the consumer stops asking questions, it does not necessarily mean that they have all the information. It is also my obligation to give information about loan programs that the consumer may not be knowledgeable to ask questions."
"Countrywide are transferring the burden of education on to their customers. Then when the borrowers make ill-informed choices based on the limited education received, Countrywide calls them "idiots."
"Many mortgage companies, and it would appear Countrywide is one, are too nervous to explain all the implications of a loan because they feel that they will lose the deal. This means that borrowers are getting into loans without knowing the full ramifications. The mortgage company is then doing a disservice to the consumer and doing absolutely nothing to enhance the image of the mortgage industry as a whole."
"Countrywide customers are not "idiots" as the Countywide Chief Executive was quick to point out; the borrower was just ill informed during the loan process."
"Mozilo needs to make phone calls inside the company rather than outside, that way consumers would be completely informed on payment option ARM loans," concludes Polanco.
Jaime Polanco is President of AmeriVision Mortgage Corporation, a nationwide mortgage company based in Southern California. AmeriVision specializes on payment option ARM loans.
For more information please call 866 398 4664 or go to http://www.goldmedalmortgage.com/PayOptionRefinanceLoans
Web Site = http://www.goldmedalmortgage.com/PayOptionRefinanceLoans
Contact Details = Keith Hunt 8190 Orchard Street Alta Loma , 91701 $$country
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