Thanks Jeff Belonger for scratching this itch!!

Karl

You hit the nail right on the head.

I think a lot of things are in line for change.

Sincerely

Tom Braatz

Karl.....  first off, I respect the arguments in hand regarding YSP.  And this is not directed at you.... but I am getting tired of hearing how YSP should be disclosed to give the client the best options. In all honesty, as you read my previous blog, do you think that would help?  Then what?  Escrows have to be disclosed to the penny? 

Here is why I say what I say....  Example : You :  If your rate was 5.75% and you were charging 1 pt with $500 in fees.  Your YSP was 1 pt on the back. Me:  My rate is 5.625% and I was charging 1 pt with $500 in fees.  But why YSP was 1 1/2 pts on the back.  Who has the better deal?  My client has the best deal. So what I made more money.  Unless we put an exact fee per loan to be made...  maybe being so transparent to where it would be disclosed as this.... 

if your loan amt was : 100 k to 150 k   =  x,y,z lender can make a total of $4,000

if your loan amt was : 150,900 to 200k  = x,y,z lender can make a total of $4,500

or....

Full doc loans can make $4,000

Stated loans can make $3,500

No Doc loans can make $3,000

Do you know what would happen then?   You think service is poor now?  Do you know how many more loans would fall apart at closing? I do a lot of FHA loans and many of them take a lot longer to put together prior to me doing an application. And even in the process, there is a lot more crossing the "t"'s and dotting the "i"'s....    do you think that many would work harder for a flat fee?

Overall.....   I understand the complaints about YSP... my main focal point is that I can't see congress or anyone else saying that brokers won't be able to make YSP....  common, let's use common sense. Sure, a lot of government doesn't have common sense.... but getting back to what makes sense.... it would cripple the mortgage industry, those that make many of the loans.

We could be here all day.... because I could rip companies such as Wells Fargo or Countrywide, because I have 3 clients right now that originally went to them and they said that they were approved by them. I reviewed their stuff and I said no way... this is what we would need to do. What happened?  All 3 never settled, the loan officer was just blowing smoke. Probably because they didn't know what they were doing.  Both bankers and brokers, that's were we need to start. I guess it goes back to mandatory education. Lastly, when reading my post that you referred to....  read again my ending, about how we need to police the last 2 days of a closing, having those checks and balances in place. 

How about this?   As check adn balances... the lender needs to redisclose 1 day before settlement the GFE, TIL , and lock????   And if it changes at settlement, the client fills out a complaint form and the lender is now penalized big time. Let's cut back on the bait and switch. Let's stop with the YSP argument being the smoke screen. 

all sounds like pretty simple stuff... give the customer what they want (as best we can) tell them what it costs... and let them decide... I have lost many deals to dishonest brokers and I'm happy to say all but one are out of business today... the cream rises to the top... both you and Jeff are helping to make our industry stronger and more professional... thank you

Rick