A: The Fair Mortgage Collaborative (FMC) is a non-profit institution that seeks to reform the U.S. lending industry by working to educate the public to understand the difference between fair and predatory lending practices. The FMC undertakes research on these issues and periodically releases reports on its findings. The FMC has also established both a set of Fair Lending Standards and a process for certifying “Fair and Safe” lenders whose lending practices are in full compliance with the Fair Lending Standards.

 

A: The FMC has developed Fair Lending Standards for lenders, brokers, secondary market intermediaries and counseling organizations. The Standards require an organization to put the consumer’s interest first when recommending or offering loan products. The Standards distinguish between “standard” products, which are typically good products for consumers, and “non-standard” products, which can have important consumer benefits but can also be abused. The FMC Standards require lenders and brokers only to use non-standard products if the consumer is not eligible for a conventional loan, clearly understands the costs and benefits of the loan, and has the option to go to loan counseling to become qualified for a cheaper conventional loan.  Finally, the FMC Standards prohibit a number of loan products that have proved extremely harmful to the vast majority of borrowers in the past. For a more detailed description of the FMC Standards, click here.

 

A: The FMC Standards were developed and are maintained by representatives from some of the most prominent organizations that promote fair lending and that make or buy fair and safe loans. They include the Calvert Foundation, the Community Reinvestment Fund, the Consumer Federation of America, the Corporation for Enterprise Development, the Ford Foundation, the Heron Foundation, the Housing Partnership Network, the National Federation of Community Development Credit Unions, Neighborhood Housing Services of America, Neighborhood Housing Services of Chicago, NeighborWorks America, the Opportunity Finance Network (formerly National Community Capital Association), Self-Help Credit Union, and Shore Bank.

 

FMC has created a subsidiary, Fair Loan Certification, Inc., to review organizations that request certification as meeting the Standards. This review process includes an initial audit that includes a review of the organizations policies, procedures and products, as well as a review of each loan that the organization makes after it has been certified. Organizations that pass this review process receive the “Mortgage Collaborative Certification” designation, and can use the “Mortgage Collaborative Certified” logo. For more information, visit the Fair Loan Certification, Inc. website at www.fairloancertification.com.

 

 

A: The Fair Mortgage Collaborative (FMC) is a non-profit institution that seeks to reform the U.S. lending industry by working to educate the public to understand the difference between fair and predatory lending practices. The FMC undertakes research on these issues and periodically releases reports on its findings. The FMC has also established both a set of Fair Lending Standards and a process for certifying “Fair and Safe” lenders whose lending practices are in full compliance with the Fair Lending Standards.

 

A: The FMC has developed Fair Lending Standards for lenders, brokers, secondary market intermediaries and counseling organizations. The Standards require an organization to put the consumer’s interest first when recommending or offering loan products. The Standards distinguish between “standard” products, which are typically good products for consumers, and “non-standard” products, which can have important consumer benefits but can also be abused. The FMC Standards require lenders and brokers only to use non-standard products if the consumer is not eligible for a conventional loan, clearly understands the costs and benefits of the loan, and has the option to go to loan counseling to become qualified for a cheaper conventional loan.  Finally, the FMC Standards prohibit a number of loan products that have proved extremely harmful to the vast majority of borrowers in the past. For a more detailed description of the FMC Standards, click here.

 

A: The FMC Standards were developed and are maintained by representatives from some of the most prominent organizations that promote fair lending and that make or buy fair and safe loans. They include the Calvert Foundation, the Community Reinvestment Fund, the Consumer Federation of America, the Corporation for Enterprise Development, the Ford Foundation, the Heron Foundation, the Housing Partnership Network, the National Federation of Community Development Credit Unions, Neighborhood Housing Services of America, Neighborhood Housing Services of Chicago, NeighborWorks America, the Opportunity Finance Network (formerly National Community Capital Association), Self-Help Credit Union, and Shore Bank.

 

FMC has created a subsidiary, Fair Loan Certification, Inc., to review organizations that request certification as meeting the Standards. This review process includes an initial audit that includes a review of the organizations policies, procedures and products, as well as a review of each loan that the organization makes after it has been certified. Organizations that pass this review process receive the “Mortgage Collaborative Certification” designation, and can use the “Mortgage Collaborative Certified” logo. For more information, visit the Fair Loan Certification, Inc. website at www.fairloancertification.com.