Magic Funding Group, Inc goal is to conduct our business in an ethical manner that reflects the highest standards of professionalism, integrity, competence, courtesy and diligence. Accordingly, we subscribe to the following Polices, Quality Control and Best Practice Guidelines:
Laws & Regulations: Comply with all applicable state and federal laws regulations, including the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, the Truth-in Lending Act, and the Real Estate Settlement Procedure Act.
Equal Treatment: Treat all consumers fairly with regard to loan pricing, underwriting and servicing, regardless of race, color, age, gender, marital status, familial status, religion, disability or national origin.
Non-Discriminatory Pricing Guidelines: Adopt and apply consistent risk based and competitive loan pricing to consumers in non-discriminatory manner with respect to rates, fees and terms.
Licensing: Exercise due diligence to confirm that lenders, correspondents and brokers are properly licensed and continue to remain in good standing.
Brokers: Develop and maintain relationships with brokers that demonstrate integrity and skill in originating real estate loans. Require all brokers to subscribe to these Quality Control and Best Practice Guidelines.
Underwriting Policies: Develop and implement prudent underwriting policies and procedures that are consistent with our Quality Control and Best Practice Guidelines.
Ability to Repay: Consider the financial ability and credit worthiness of the borrower to repay the loan no just equity in the home in order to avoid default and foreclosure. Determine creditworthiness and ability to pay through the use of objective, empirically derived, statistically significant credit bureau scoring and proprietary factors, among other factors.
Refinances: Maintain standards and procedures to ensure that loan refinances provide a material benefit to the borrower. Determine a material benefit by measuring the refinance closing cost against the refinance benefits to the borrower, such as lower payments, additional cash and default relief, among other benefits.
Disclosures: Provide consumers with accurate and timely disclosures of terms, cost, and fees in accordance with the law. Provide complete disclosures to borrowers at both the application and closing stages of the loan process.
Repayment Penalties: Offer the consumer a choice between a loan with a prepayment penalty and a lower interest rate, or alternatively, a loan without a prepayment penalty and a comparatively higher interest rate. Limit the prepayment penalty period to no more than five years.
Maximum Fees: Comply with all local state and federal High Cost Loan Restrictions. Limit prepaid finance charges, including lender and broker fees paid by the borrower, to maximum of 7.36% of the principle loan amount for all other loans.
Credit Insurance Products: Prohibit the financing of credit insurance products in connection with mortgage loans.
Balloon Loans: Refinance a balloon loan at maturity, upon request of the borrower, at the then available rate, fees and terms, provided that (a) we still own the loan, (b) we have products that are available to the borrower, and (c) the borrower meets the then current underwriting standards.
Call Provisions: Prohibit the use of call provisions in any mortgage loan contract.
Customer Service: Promptly follow up with all borrowers complaints and inquires in good faith attempt to obtain customer satisfaction.
Collection Practices: Establish reasonable and ethical debt collection practices in accordance with the law. Comply with all applicable federal and state debt collection practices laws.
Loss Mitigation: Endeavor to assist borrowers in default and/or foreclosure by working with them and utilizing forbearance, reformation and other loss mitigation tools, when appropriate.
Credit Bureau Reporting: Voluntarily report all borrowers repayment histories, including payments and defaults, monthly to the credit bureaus.
Training: Provide training to all employees and sub-contractors on fair lending laws, underwriting, loan origination and servicing on annual basis and as needed. Require that all sales, loan origination, underwriting and loan servicing personal maintain minimum standards of job proficiency of knowledge of our policies, procedures, Quality Control and Best Practice Guidelines
Audit: Conduct annual reviews of sales, loan origination, underwriting and servicing operations to ensure compliance with our policies, procedures and applicable laws. Report the results of the review to senior management. Implement and monitor quality control measures, including training and additional reviews, as needed.
