Four Must-Follow Tips to Be Confident Your Construction Loans are FHA Compliant
You know that be compliant with FHA regulations is more than just best practices – it is a must. Yet many companies do not know how to ensure they are in compliance with ever-changing, sometimes complicated regulations. At ECL Software we have been creating software solutions for the construction lending industry for many years and have come up with four tips that can help you feel confident that you are in compliance.
- Always Be Clear and Concise As is true in most things, the best advice to stay in compliance with FHA regulations are the simplest tips. Namely, make sure that you should be clear and concise. It does not take a blatant lie or purposeful fraud to be incompliant – you can also face issues if you withhold information that consumers might want to know. You must be sure to avoid deceiving consumers, harming them, or hurting the reputation of the bank. Being clear and concise is the best way to achieve all of those objectives.
- Make Sure All Disclosures Are Included You know that your financial products require that you inform the consumer of all the terms and conditions of what they are signing up for. This applies to everything from checking accounts to construction loans. Forgetting even one boilerplate page can cause serious issues. To make sure you are compliant, look at the Truth in Savings Act (specifically, Regulation DD) to see what the requirements are.
- Take a Look at Your Marketing Materials It is wise to ensure that your marketing materials are as inclusive as possible. If your market is diverse, then your marketing materials should reflect that. You want to make sure that people of different genders, ethnicities, and ages are represented. You know that the Equal Credit Opportunity Act requires all lenders to follow certain fair lending regulations. If you do not have marketing materials that are designed to appeal to the community at large, you could end up punished for discriminatory advertising.
- Trust ECL Software for Help When you decide to work with ECL Software, we can provide software solutions that make it easy for you to stay up to date on your loans. The last thing you want is to be surprised by a status or anything else. Our product allows you to document every step you take to ensure compliance, and even gives you help along the way. In fact, it is often used as an FHA 203K lending solution.
If you would like to learn more about how we can help you, contact us today at 800-625-5972. We are happy to provide a free demo so that you can learn exactly how our products can help you. Call us today or email us at firstname.lastname@example.org.