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					AFSA Education Foundation                                                                         American Association of
American Financial Services Association                                                    Residential Mortgage Regulators
919 Eighteenth Street, NW                                                                   1255 Twenty-Third Street, NW, Suite 200
Washington, DC 20006                                                                                    Washington, DC 20037-399
Phone: 888-400-2233                                                                                         Phone: 202-521-3999
Web sites: www.afsaonline.org                                                                            Web site: www.aarmr.org
           www.afsaef.org




For Immediate Release                                                    Contacts: Lynne Strang, AFSA/AFSAEF
                                                                                   (202) 296-5544, ext. 613

                                                                                      David Saunders, AARMR
                                                                                      (202) 521-3999

                                        LENDER, REGULATOR GROUPS RELEASE
                                UPDATED MORTGAGE LENDING BROCHURE FOR CONSUMERS

WASHINGTON, September 27, 2007 . . . . . Lender and regulator groups today announced an updated version of
Mortgage Loans, a joint brochure to help educate both first-time and veteran homeowners, as well as second mortgage
holders and those refinancing a loan.


The brochure, originally produced in 2001 by the American Financial Services Association (AFSA), the AFSA Education
Foundation (AFSAEF) and the American Association of Residential Mortgage Regulators (AARMR), has new
information about adjustable-rate mortgages, which have an interest rate that changes over the life of the loan.


“As lenders, policymakers and others have discussed concerns about rising foreclosures, there’s been general agreement
on the need to educate homeowners so they better understand the mortgage financing process,” said Susie Irvine,
president and chief executive officer of AFSAEF.


The brochure contains work sheets to help consumers shop for the best mortgage deal and determine an affordable
monthly mortgage payment. A glossary defines basic, but important loan terms, such as Annual Percentage Rate, finance
charge, balloon payment and arbitration clause.
                                                        -- MORE --
                                                                                       Mortgage Brochure – Page Two

In addition, the brochure offers these recommendations for borrowers:

    •   Don’t sign a contract unless you have read it, had your questions answered and check to make sure all the blank
        spaces have been filled in.

    •   Make sure the loan payment and terms you were quoted agree with the loan payment and terms on your
        paperwork.

    •   Know your legal rights. For a refinanced loan, you have the right to cancel a credit transaction within three
        business days from the day the transaction is completed or closed. For a home purchase, you have the right to
        change your mind on the mortgage loan at any time prior to the loan closing.

    •   Review and compare the terms offered by more than one lender.

    •   Remember that just because a lender is willing to make you a loan doesn’t mean that it’s the right loan for you.



Consumers interested in a free copy of Mortgage Loans may download a copy from the AFSA Education Foundation’s
Web site (www.afsaef.org) or call 1-888-400-2233.


Founded in 1990 and based in Washington, DC, the AFSA Education Foundation (www.afsaef.org) develops education
materials and programs to help consumers become financially literate. It is affiliated with the American Financial
Services Association (www.afsaonline.org), a national trade association for the consumer credit industry, protecting
access to credit and consumer choice. AFSA’s 350 members include consumer and commercial finance companies, auto
finance/leasing companies, mortgage lenders, credit card issuers, industrial banks and industry suppliers.


The American Association of Residential Mortgage Regulators (www.aarmr.org) provides a forum for state mortgage
regulators to exchange information and ideas and to work together to improve the regulatory process; promotes a better
understanding of mortgage regulation through training programs; and facilitates communication and cooperation between
state mortgage regulators and the mortgage industry.
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