A situation in which a borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan’s principal. The borrower may end up owing more than the original amount of the mortgage.
The content of this advertisement is for informational purposes only. This is not an offer for extension of credit or a commitment to lend. All rates, fees, and loan terms are subject to formal loan application, credit risk, appraisal evaluation and other lending criteria. Programs, rates, terms, and conditions are subject to change without notice. Other restrictions may apply. Diamond Residential Mortgage Corporation NMLS 186805; Registered Colorado Mortgage Company; Texas – SML Mortgage Banker Registration
Consumers wishing to file a complaint against a mortgage banker should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the Department’s website at https://www.sml.texas.gov. A toll-free consumer hotline is available at (877) 276-5550. The Department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage residential loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the Department prior to the payment of a claim. For more information about the recovery fund, please consult the website at https://www.sml.texas.gov