4 Easy Tips to Ensure Your Construction Loans Are Compliant with FHA Regulations
Anyone in the construction industry knows how important it is to be incompliance with FHA regulations whenever construction loans are extended. However, some companies aren’t sure of all the ins and outs of these sometimes complicated regulations. At ECL Software, we have a series of products that are designed to make the lives of construction personnel easier. Today we’re going to offer four simple tips that can help improve your FHA compliance.
Be clear and concise
Include every necessary disclosure
Be inclusive with your marketing materials
Turn to ECL Software for great products
The best tips are often the simplest and that’s true here. Remember that you don’t have to lie or provide false information to be incompliant – you can also get in trouble for withholding information that a consumer would want to know. The Dodd-Frank Act of 2010 makes it clear that you must provide information to avoid deceiving consumers, causing them harm, or hurting the bank’s reputation.
Remember that all financial products require the lender inform the consumer about exactly what they’re signing up for. This applies to checking and savings accounts, but it also applies to construction loans. For more information, consult the Truth in Savings Act, specifically Regulation DD, to see the requirements for disclosures. This will give you information not only on what needs to be disclosed but when it needs to be disclosed.
A you look for images to use in your advertisements and other marketing materials, look for ways to incorporate the diversity that exists in your market area. This includes people of different ages, genders, and ethnicities. Remember that regulations related to the Equal Credit Opportunity Act require your company to follow fair lending regulations. If your marketing isn’t created to appeal to every customer segment or if it excludes a segment consistently, then you could be punished for discriminatory advertising practices.
When you choose to work with ECL Software, we can provide you with software that makes it simply to set up and look at your loans, no matter how unique they are. You can document all the steps you’ve taken to be compliant with FHA standards and get helpful reminders along the way. In fact, our software can be used as an online FHA 203K lending solution. Let us help you compile all the documents you need to ensure that the borrower is staking on track with their construction loan.
Do you have questions about how our products can help? Then give us a call or reach out to us today! We can be reached at 800-625-5972 and look forward to helping you find the solutions that will best serve your construction company.