Betty Sutton: “Requiring lenders and servicers to include their best estimate of the amount that will be incurred when the loan resets…”

“Requiring lenders and servicers to include their best estimate of the amount that will be incurred when the loan resets is a commonsense way to deal with providing these borrowers with information that is essential if they are in a position to avoid foreclosure, and all we are asking under this amendment is for a good-faith estimate based on accepted industry standards. The estimate need not be exact. A lender or servicer simply needs to make a good-faith effort to estimate the payment that will apply after reset. It is important to keep consumers informed about the date of reset, but if they are not sure what they will face when the loan resets, it will be much more difficult for them to prepare what is coming. This is a simple requirement to insure that not only will homeowners know when this will happen, but also what will happen.”