PARSIPPANY, N.J., May 5, 2016 /PRNewswire/ -- If you're planning to buy a home with a mortgage or refinance in 2016, you're virtually certain to encounter a new consumer-friendly federal disclosure — the Loan Estimate (LE).
eLEND, a division of American Financial Resources, Inc., announced today the launch of the eLEND mobile loan estimate comparison tool to assist in evaluating those Loan Estimates. The industry's first new, technology-driven platform designed to support the newly imposed Consumer Financial Protection Bureau (CFPB) disclosure regulations, the eLEND "Rate My Rate" mobile loan estimate comparison tool offers borrowers the ability to compare Loan Estimates from other lenders with eLEND offerings to see if they can save money on a mortgage best suited for their needs.
"The CFPB redeveloped this whole process and these disclosures to get consumers to compare their estimates with other lenders. However, consumers still aren't making this a priority and many don't undergo this process at all," says Robert Pieklo, Chief Strategy Officer and EVP of eLEND. "We developed Rate My Rate to highlight the importance of these government-mandated processes and provide a simple, easy-to-use tool that empowers consumers to make smart decisions regarding their home financing and ensure they are getting the best possible deal."
Rate My Rate offers a major advancement in digital home finance shopping. Launched just prior to the busiest time of year for home purchases, Rate My Rate utilizes patent pending technology that reads information off of a prospective borrower's current Loan Estimates and feeds it through the proprietary eLEND pricing engine. By comparing these estimates across five major categories: loan costs over 5 years, principal paid in five years, annual percentage rate (APR), total interest percentage (TIP) and total loan costs, the eLEND mobile loan estimate comparison tool provides an application research process that actually reduces the burden on the applicant by making the whole comparison shopping process easier to conduct, and more importantly, easier to understand.
According to a 2013 CFPB study, 77% of all borrowers applied to only one lender or mortgage broker. In response, the CFPB created these new disclosure procedures to encourage comparison shopping. Yet, many consumers are still not taking advantage of the new disclosure regulations.
"We make it a priority to ensure consumers are taking action to get a second opinion and don't take any one estimate at face value," Pieklo says. "You wouldn't take a serious diagnosis from a doctor, or invest in the market without getting a second opinion. Why would you risk getting a mortgage without shopping around?"
For more information on eLEND's Rate My Rate mobile loan estimate comparison tool, visit www.elend.com/my-loan-center/#/compare.
eLEND is a division of American Financial Resources, Inc. that strives to provide affordable home financing options to first time buyers and existing homeowners. Utilizing the latest technology to deliver educational resources to their customers, eLEND is committed to simplifying the mortgage process. eLEND continues to be a consumer-first brand dedicated to providing consistent and personalized service that meets all of their customers' needs.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-mortgage-comparison-tool-could-help-buyers-300263567.html