06.12.08
The HUD Miranda Script
Due to the multitudes of bad loans written in the last few years, and the subsequent foreclosure problems, the government is trying to institute what I call a “Bozo-proof” approach to the loan. So how do you take a complex set of mortgage documents and make them “easily understandable?” Answer: the Miranda Respa Script
Under the proposed new rule, closers would be reading from and providing a copy of a ‘‘closing script’’ to borrowers; known as the Miranda RESPA . The script might read something like this:
Miranda RESPA Script
You have the right to provide payments,
Any prepayments you make can and will be held against you with a prepayment penalty.
You have the right to have an attorney present, to ask questions during closing.
If you cannot afford an attorney, a Miranda Script will be provided for you.We have the right to raise the rate.
Anything our documents say can and will be used against you in a court of law.
We have the right to have an attorney draft and slip in loan terms
If you cannot afford payments, an attorney will be appointed to foreclose.
Do you think HUD can successfully create a Miranda Script to explain a hundred pages of complex mortgage documents?