[quote=Blogstar]It’s not idiotic semantics. You have to look at the same rate environment not the current one against a previous one. It’s not free compared to the current rate environment or else HLS doesn’t get paid and he gives the best rate possible for the specific client. Thats what matters when you are shopping the loan and possibly having to or wanting to live with it for a long time, like 5 years or more. How often does HLS not get paid anything for loans he originates? Not too often. Hence, no cost equals free loans doesn’t add up.[/quote]Blogstar, do you expect someone in HLS’s profession to “work for free?” The “system” is set up to compensate mortgage loan officers/brokers/agents for their hard work in bringing a client in and finding the best program for their needs, processing all the documentation for a mortgage and even originating some first and subsequent trust deed mortgages. The vast majority of borrowers can’t do any of this on their own, and, in any case, are not licensed as a RE broker/salesperson, nor have any kind of a lending designation on their license. Even when there “direct lenders” and mortgage loan officers working for the “Big Banks” in portfolio lending (15+ years ago), these people still got paid even on mortgages which are “no cost” to the borrower. If they were actual employees, they got salary and bonuses. If they were a mortgage banker, they got paid through the loan originator.
As long as HLS and his brethren aren’t attempting to originate NINA loans, falsify loan applications and, in general, deal in exotic instruments which are difficult, if not impossible for Joe and Jane 6p Borrower to understand, I’m all for more (highly qualified and principled, of course) people in this profession.
In most cases, the “system” isn’t set up for reward Joe6p, the borrower, for taking out a new mortgage. It can, however, allow him do it for “no cost” to him.
