If you thought you were eligible to renegotiate your mortgage because of something fishy that happened at the closing table, there’s a 98 percent chance that you’re right.

At least, that’s the word coming from the Consumer Mortgage Audit Center (CMAC), which just released its findings after examining thousands of mortgages. Apparently, the vast majority of mortgages are potentially eligible for re-negotiation under the Truth in Lending Act — a law first passed in 1968 — and the Real Estate Settlement Procedure Act.

According to CMAC, the five biggest violations are:

1. Missing paperwork
This is the most common violation — in an estimated 98 percent of the mortgages CMAC found that not all paperwork had been properly filed.

2. Bad “good-faith” estimates
If your broker wrote you a lowball estimate of what your monthly costs would be — or switched rates on you at the last second, resulting in higher closing costs — you aren’t alone. This happened to an estimated 21 percent of borrowers.

3. Incorrect payment representations
If your lender filled out the loan documents incorrectly and didn’t disclose all their costs or misrepresented the cost of borrowing money, that’s also against the rules. This afflicted 26 percent of the mortgages CMAC reviewed.

4. Not revealing the YSP
One way brokers make their money is by giving borrowers a slightly higher interest rate than the lowest they actually qualify for. The difference in rates — called the Yield-Spread Premium (YSP) — results in income for the broker. Brokers are required to reveal the YSP within three days of their estimate. A lot of them, however, fail to do so.

5. No documentation of income
Many borrowers had their income numbers fudged to allow them to qualify for much larger loans. And some brokers — who could then make a bigger commission — went along with it. CMAC found that a third of mortgages had false income data

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


Back Bay

Beacon Hill

Charles River Park


North End

South End

Seaport District

South Boston



Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



Call Now