Criminal mortgage brokers upset w/ fee disclosures

[TheBreeze]

Is there any kind of cap in California on the number of criminals that can register to be mortgage brokers? If so, hopefully it’s lower than Florida’s cap:

It’s a move that the state regulator now says is needed to prevent future abuses, after the Miami Herald broke a story in August 2008 that found that more than 10,000 of the mortgage brokers in Florida had criminal records — brokers that were licensed by the state.

Oh yeah, these guys are still fighting the disclosure of their fees:

Brokers have become increasingly frustrated at what they see as unfair treatment at the hand of state regulators, relative to retail originators and other non-brokers in the mortgage funding space. A recently-passed final rule to amend the Real Estate Settlement and Procedures Act, for example, led the National Association of Mortgage Brokers to sue the Department of Housing and Urban Development. The brokers’ association claims that by forcing third-party originators to disclose yield spread premium — disclosures not required of retail originators — regulators are favoring one business model over the other.

http://www.housingwire.com/2009/01/02/florida-considers-capping-mortgage-brokers-fees/

[urbanrealtor]

The brokers have a point.
Yield spread disclosure should be required of everyone.
Its not as though the bank LO’s (some of whom were tellers last week) are necessarily more honest than the 3rd party originators (eg: HLS).

Bank loan officers are not even required to be licensed generally and often the banks are not bound re licensing laws.

[urbanrealtor]

The brokers have a point.
Yield spread disclosure should be required of everyone.
Its not as though the bank LO’s (some of whom were tellers last week) are necessarily more honest than the 3rd party originators (eg: HLS).

Bank loan officers are not even required to be licensed generally and often the banks are not bound re licensing laws.

[urbanrealtor]

The brokers have a point.
Yield spread disclosure should be required of everyone.
Its not as though the bank LO’s (some of whom were tellers last week) are necessarily more honest than the 3rd party originators (eg: HLS).

Bank loan officers are not even required to be licensed generally and often the banks are not bound re licensing laws.

[urbanrealtor]

The brokers have a point.
Yield spread disclosure should be required of everyone.
Its not as though the bank LO’s (some of whom were tellers last week) are necessarily more honest than the 3rd party originators (eg: HLS).

Bank loan officers are not even required to be licensed generally and often the banks are not bound re licensing laws.

[urbanrealtor]

The brokers have a point.
Yield spread disclosure should be required of everyone.
Its not as though the bank LO’s (some of whom were tellers last week) are necessarily more honest than the 3rd party originators (eg: HLS).

Bank loan officers are not even required to be licensed generally and often the banks are not bound re licensing laws.

[HLS]

Urban, I politely disagree about brokers having a point…

Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??

I say screw the mortgage person that doesn’t want to disclose their total compensation.

What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..

If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)

Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.

Many bank employees are clueless that wholesale rates exist with better options for many borrowers.

For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.

[HLS]

Urban, I politely disagree about brokers having a point…

Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??

I say screw the mortgage person that doesn’t want to disclose their total compensation.

What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..

If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)

Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.

Many bank employees are clueless that wholesale rates exist with better options for many borrowers.

For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.

[HLS]

Urban, I politely disagree about brokers having a point…

Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??

I say screw the mortgage person that doesn’t want to disclose their total compensation.

What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..

If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)

Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.

Many bank employees are clueless that wholesale rates exist with better options for many borrowers.

For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.

[HLS]

Urban, I politely disagree about brokers having a point…

Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??

I say screw the mortgage person that doesn’t want to disclose their total compensation.

What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..

If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)

Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.

Many bank employees are clueless that wholesale rates exist with better options for many borrowers.

For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.

[HLS]

Urban, I politely disagree about brokers having a point…

Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??

I say screw the mortgage person that doesn’t want to disclose their total compensation.

What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..

If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)

Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.

Many bank employees are clueless that wholesale rates exist with better options for many borrowers.

For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.

[NotCranky]

HLS, By wholesale you mean the same as Par right? Who is funding your loans. Is the borrower paying all their costs?

[NotCranky]

HLS, By wholesale you mean the same as Par right? Who is funding your loans. Is the borrower paying all their costs?

[NotCranky]

HLS, By wholesale you mean the same as Par right? Who is funding your loans. Is the borrower paying all their costs?

[NotCranky]

HLS, By wholesale you mean the same as Par right? Who is funding your loans. Is the borrower paying all their costs?

[Author]

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