Supreme Court Says Discount Points Don't Equal Lower Rate - 05/25/12 03:20 PM
Supreme Court Says Discount Points Don't Equal Lower Rate
Wow, I don't want to get all giddy here, but this looks like some common sense! According to an article written by Brian Collins in National Mortgage News, the supreme court ruled in favor of Quicken loans regarding a suit where the borrowers say there was a RESPA violation.
The borrowers felt if they paid a discount point they should have received a lower rate for it. The lender says they did; they say they did not.
Who Cares? What I care about is by ruling in favor of the lender the Supreme … (13 comments)

TEN COMMANDMENTS WHEN APPLYING FOR A MORTGAGE LOAN - 05/17/12 11:23 AM
 

 
TEN COMMANDMENTS WHEN APPLYING FOR A MORTGAGE LOAN

I came across this in "Origination News" online this morning and since it said I could copy and share, I'm copying and sharing. I have a list I send out to those who apply for a mortgage loan with D A Griffin Financial, this one is a little more direct. It may be a good thing for the consumer, loan originators and real estate agents to share to avoid that OOPS!

1. Thou shall not change jobs or become self-employed.
2. Thou shall not buy a car, … (4 comments)

WHO DO YOU TRUST MORTGAGE BROKER OR A BANK? - 05/16/12 02:17 PM
WHO DO YOU TRUST MORTGAGE BROKER OR A BANK?
When a home buyer or home owner is looking for financing, who do they trust a mortgage broker or a bank? From time to time I read articles written by someone in the financial sector who thinks they know a thing or two.
I came across an article from three years ago that appeared in the N Y Times and was rather derogatory about mortgage brokers, quoting a northern Ohio broker several times. What is fascinating is when I google the broker mentioned here, I can hardly find them, so that makes me wonder even more … (2 comments)

CFPB CONSIDERING A FLAT FEE FOR MORTGAGE ORIGINATORS - 05/10/12 11:03 AM
CFPB CONSIDERING A FLAT FEE FOR MORTGAGE ORIGINATORS

 
I read today the CFPB is considering a "FLAT FEE" for loan origination compensation. This is after the April Fools Day change in 2011 that made it illegal to collect a fee from a consumer and from a lender on the same file, and made it mandatory that every borrower be charged the exact same percentage, no matter the loan product, size of loan or work involved.
Prior to  April 2011, most of us had an idea of how much we needed to make on a loan to make a profit. … (2 comments)

HOW DO MORTGAGE BROKERS GET PAID? - 05/07/12 02:10 PM
HOW DO MORTGAGE BROKERS GET PAID?
How I get paid comes up early on in a conversation with a home loan applicant.
Mortgage brokers are paid by either a consumer or by a lender, but not by both. Prior to April 2010, mortgage brokers could get paid by a combination, but the loan officer compensation rule that went into effect on April Fools Day put an end to that. 
When a lender accepts a loan from a mortgage broker they pay "yield spread premium" or YSP. A mortgage broker is required to disclose to the borrower the gross amount of money (YSP)  the firm … (6 comments)