Mortgage Coach added debt consolidation strategies in the Total Cost Analysis (TCA) presentation that will enable lenders to educate consumers about lower interest repayment options as peak home equity freezes household cash flow.
According to Federal Reserve data for the first quarter, there is $ 21 trillion in home equity in the U.S. and about $ 4.6 trillion in non-mortgage consumer debt such as credit cards, auto loans, and college loans, with revolving and student debt in the Period of pandemic job losses have increased. At the same time, mortgage rates remain at historic lows.
Mortgage lenders use the Mortgage Coach platform nationwide to compile millions of multi-option loan comparisons annually. Each personalized TCA presentation is sent to the borrower via a digital link by email or text and offers the borrower an individual digital experience and the opportunity to make an informed decision about their home loan.
Mortgage Coach’s attached debt consolidation illustrations allow lenders to easily review detailed consolidation scenarios in a borrower’s total cost analysis presentation, including comparisons between a no-debt consolidation mortgage, a mortgage that consolidates all consumer debt, and a partial debt consolidation mortgage, both of which provide short and long term views of interest savings and cash flow effects.
“One of the most powerful elements of a Mortgage Coach debt consolidation strategy is providing borrowers with alternatives for using funds they would otherwise spend on debt,” said Bill Dallas, president of Finance of America, in a press release. “Using Mortgage Coach to present a debt consolidation strategy supports our commitment to helping people make informed decisions about borrowing and their most important life purchases.”