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Mortgage Broker vs Mortgage Banker - The reality of it, just not opinion

By Jeff Belonger

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

February 15, 2009 06:39 AM

mortgage banker as the devil

All Mortgage Brokers are bad, they are the Devil. Now wait, who said that? Ah, rumors and in my opinion, are from those that don't fully understand the ins and outs of the mortgage business. A topic regarding mortgage brokers and mortgage bankers that has been grossly argued based on opinion, always seeming to fail in pointing out hard core facts.

Just recently, I read a blog on Active Rain that stated that there was a hidden agenda by banks to put brokers out of business. What irritated me was this was based on opinion, but never mentioned. Here is what was written on this same subject.

"Are mortgage brokers being squeezed out of the business as, one by one, the nation's largest lenders move to block them from offering their loans?"

This authors answer?

"You bet they are."

Picture from www.istockphoto.com

Here is another part of this person's blog that is very opinionated, but sounds like fact because of how it's stated, because they are a good writer. Here is what was stated....

"Oh, sneaky lender, you. I almost forgot you have other ways of getting rid of mortgage business." And then they include a list to defend their opinion : They basically said, banks can :

raise credit scores
increase underwriting requirements
make getting an appraisal more difficult
slow down the approval process (major opinion based on my opinion by Jeff Belonger)
raise rates (huh? This is done through Wall Street. It's called coupons and risk pricing - each investor has different rates - this has to be one of the worst statements I have read without an explanation)

Now, before I go over my thoughts and opinions, a little about me : (short resume)

Over 16 years in the mortgage industry.
Worked for big companies such as Norwest Mortgage, #1 when I worked there (now Wells Fargo) and Columbia National Mortgage, #51 when I worked there (bought out by American Home Mortgage, and then closed shop).
Over half of my career, I have worked for the mid sized mortgage bankers, which I will describe below.
I have worked for 2 brokers in my career
I have worked as a manager of an office, overseeing 10 loan officers.
I was a small partner of a company, which allowed me to review the companies books, truly understanding how a company is operated and what it takes.
I now run a net branch.
Lastly, I was privy to many banks portfolio's on Wall Street in 2008, looking at the non-performing loans that totaled in the 100 billions. So I can see what failed and why.

First we need to define the different types of lenders and their roles :

Bank - One who controls their own money and that is FDIC approved. This could be such large lenders as Bank of America, Wells Fargo, Countrywide, and others. These companies can change their guidelines at any time. But here is a key point. Even though they service their own mortgages or those bought by brokers, they still need to make sure that loan is sell-able on Wall Street. Please read : How mortgages work - Investor Style

Mortgage Banker - aka Correspondent Lender (by Rhonda Porter) - One that underwrites their own loans, closes in their name, and uses their own funds. They typically sell the loan about 15 days after the loan is closed. They can also act as a broker if they don't want to take full risk. And just a fyi, Bankers usually have 5 to 10 investors that they can sell their loans to. Jack Guttentag, a well-known mortgage blogger & educator, with 25 + years experience in mortgages. What is a correspondent lender?

Mortgage Broker - One that has the least amount of risk on the table. Yes, they have many lenders that they can sell to, and they use this as their main selling point. But again, so does a mortgage banker.

Bankers vs brokers

Let's go over the basic misconceptions based on my opinion and for the fact that I interviewed 23 loan officers in the last week about this same subject.

Who takes greater risk? The bank takes the greatest risk, because they are servicing the loan. The mortgage banker is next, because the bank they sell to can say that they don't like the loan even after the banker closes the loan on their own warehouse line. Or if the loan would would default in the next 2 months, the banker has to buy back the loan. The broker in most cases, gets to wash their hands of the loan once the bank buys it from them, which is at time of settlement. The broker even gets their check at that moment also for services rendered.

Banks can raise credit scores to hurt the broker from doing business. This person failed to state that this goes the same for the mortgage banker and the bank themselves. Yes, some banks might have a slight difference with credit scores for their retail branches. But it goes back to risk. Keep in mind, even these banks sell pieces of that mortgage on Wall Street. Just because the bank services that mortgage, doesn't mean they own the whole thing.

Banks making the appraisal more difficult. Again, this was based on an opinion. This could be a whole blog on its on. The main theme again, risk. That bank needs to make sure that this loan can be sold on Wall Street.

The Banks are raising rates to get rid of mortgage brokers - How can one make this statement? Very misleading. As mentioned, we all get basically the same money from the same place. No matter if you are a broker, banker, or bank. Yes, some rates vary from investor to investor. But the brokers get the same pricing as a banker or even your large mortgage banks do. This statement is very false in my opinion. Please read my comment to Rhonda Porter for more on this. My Comment

I have 10 to 20 lenders that I shop with to get you the best rate.... - This is more commonly stated by mortgage brokers, to make you think that they can get you the best deal with the lowest rates. Well, a mid sized mortgage banker can do the exact same thing. What defines a mortgage banker is that they actually underwrite the loan, meaning that they have more control. They don't have to rely on someone else that could say no at any time. PS.. no matter who you are, everyone gets the money from the same place, just through different channels.

Picture below from www.istockphoto.com

Mortgage Bankers taking risk.

Summary : The biggest argument of lately is that mortgage brokers are being forced out of the industry. That can be ones perception and opinion, but reality must set in. Again, who takes the greater risk?

Overall, yes, mortgage brokers have been at least 50% of all business done in the last 2 decades or so. And yes, banks have made money because of this. How do you think Countrywide was propelled to the number 1 lender in America? More than 50% of their business came from mortgage brokers. But why are banks tightening? Based on past greed by banks with major losses and the ever changing economy.

The bottom line, don't let opinion that sounds factual fool you, and should be based on reality. And again, this is not just my opinion, but the opinions of my peers in the mortgage industry, both as brokers and bankers. Maybe the questioned should be, Mr. Broker, why don't you want to be a banker? Possible answer? Because it costs more money and there is a lot more risk. The main theme that was misplaced was "Risk."

For more opinions on this subject, please read :

The Explanation of Mortgages : From the beginning of time...... A must read for a better understanding on how mortgages are sold.

Mortgage Banker vs Mortgage Broker -- What is the difference????

Mortgage Brokers vs Mortgage Bankers - Do you want the truth?

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages -

- Conventional Loans - 203 k loans -

- Mortgages -

Experience & Knowledge at its BEST !!!

________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

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Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

LEWIS.... some good points, but you are dealing with some bankers that are the middle man. With most of our investors, our loans are being bought in less than 15 days still. Yes, we had an investor or two over the summer that were like 30 to 40 days, but we stopped doing business with them. They both just had poor back-end office support. Since then, we have gone back to one of them and not instead of 45 days, they are down to 15 days also. From talking to you, the people that you are using, are still selling the loans to someone else. So you have an extra body in there. And maybe they just aren't set up for handling this work load. Or, maybe that is their excuse to you....??? I am saying this because I don't believe to many excuses from other lenders unless I am at the front of the situation. You are relying on your source to be upfront with you, but I hear so many excuses that are lies, just so they don't look bad.

I don't think we will lose the mortgage banker, because they like to use companies such as ours, to offset the risk. If the banks just controlled this all by themselves, business would drop off completely. I can get more things done and bought than some of the same people that we sell to. If we take the upfront risk, but it still looks good, this is not a bad thing for the bank either. So as much as I can see your point, I don't think mortgage bankers are as bad off as the mortgage broker or would go instinct. And if they did, in my opinion, people won't be able to buy homes or refinance as much as they can now. Think it's bad now? Less competition or not, volume will be down considerably and we'll all be in trouble.

Feb 15, 2009 09:33 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

GARY... . thanks for the kind words. Yes, it basically does come down to risk. But for some reason, this was left out of the other blog. But the author made every excuse seem very real and only against brokers. And I can keep pointing back to the credit score comment. This same person forgot to mention that even the banks themselves have imposed credit score restrictions on their own people.

JASON.... . hijacking one of my posts? lol Hey, that was some funny stuff in any case. thanks for the laugh that was factual, with a hilarious twist to reality.

Feb 15, 2009 09:38 AM

Jennifer Monroe

Indigo Home Team powered by Compass - Charlotte, NC

Real Estate REALTOR®/Broker/Designer

As you and I talked about this very issue the other day, I am here to make my feelings (yes - feelings, not facts) known again because I somehow feel that I missed the mark in our discussion. Either that or you are just uber stuborn!!

I find equal validity in writing about professional opinion as I do about writing about just the facts. I call it perspective. We can interview the most noted economists, all of whom work with the same 'facts', and we will hear markedly differing views on how those facts actually play out in real life. This is why I don't think it's completely fair to come down hard on a writer with an opinion. Especially a writer who otherwise does a terrific job articulating information in a way that the average Jane can easily understand. It is still doing a service if you have the power to get through to your audience. Even if the information is tied to their locality or limited to their particular experiences.

As a Realtor, I often read posts here that I find very hard to believe. When these posts are couched as fact, I have to remind myself to step back and ask whether it's possible the market operates under different forces in that writers locale, thus flying in the face of what I know to be true where I am. Sometimes my friend, sometimes.

Just my .02 worth :-)

p.s. Everything Jason says is 100% TRUE!!!!

Feb 15, 2009 10:27 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JENNIFER..... very well said. "perspective"... and I don't have a problem with ones perspective or opinion, I love a good debate. But back it up with fact and or surveys and not based on what you alone think. And most of all, without putting the words fact or opinion or perspective in the blog or any writing, just allows the reader to assume that it's all true and factual. That's the problem that I have with it.

Now, one of the main differences with this post and the one that I am talking about is that we had two types of professionals chime in. In the post that I am referencing about, most of the comments that thanked the author for good information and commented that it was good were realtors for the most part. Even though I have a few comments, my post has mostly loan officers and the majority seem to agree with my topic of discussion that was failed to be mentioned in the other post... Risk. And another thing, the credit score issues. To me, that is misinforming the general public and the real estate community.

In regards to people will have different takes and different sides. Again, I agree. We have this amongst professionals often, especially on the news. But when those that could be wrong, but don't care to define the topic, yet they write for the public and to the public... just so they can get noticed amongst their peers, again, is misinformation. And I would bet that many of these same people are just good at talking and or writing, but aren't as good at their profession. They are usually linked as professionals in their field because they are telling people what the media wants to be published. Same on here... unless you had people in the mortgage business reading mortgage related blogs, all you are going to have is one outsider reading another professionals post, view, and giving it two thumbs up, when it might not be true or truly worthy.

But you hit the nail on the head when you said this... "I often read posts here that I find very hard to believe. When these posts are couched as fact, I have to remind myself to step back and ask whether it's possible the market operates under different forces in that writers locale, thus flying in the face of what I know to be true where I am." Your .02 is always appreciated. thanks

Feb 15, 2009 11:39 AM

Katerina Gasset

The Gasset Group & Get It Done For Me Virtual Services - Provo, UT

Amplify Your Real Estate & Life Dreams!

Jeff- You write great factual posts about the mortgage business as well as great consumer content. I am glad to have connected with you.

Feb 15, 2009 02:07 PM

Rhonda Porter

Mortgage Master Service Corp. - Seattle, WA

MLO-121324, Seattle Mortgage Lender

Jeff, you just wrote everything I've been thinking about writing in light of PMI and Chase kicking brokers in the butt. I work for a long time family owned correspondent lender...but who knows who's next for a huge kick in the gut?

IMO it will come down to who had the most lobby dollars. Banks will beat out the small family owned companies every time.

We need to start a consumer campaign to contact their elected officials to support their mortgage originator.

Feb 15, 2009 05:28 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

KATERINA..... . thank you very much for those kind words. Opinion can be factual if you back it up with proof or surveys, etc etc... but to just put stuff out there and to never claim that is was opinion, makes me sick. And I am glad that we have gotten together. thanks again for the opportunity.

RHONDA.... . is that the case of great minds thinking a like? ;o) Sure, because of the mess that we are in, banks could be made the kings of the US, because of the gov't intervening. But I don't see mortgage bankers going away at least, because banks don't want to take all of the risk upfront. In regards to brokers? That's hard to say. Can I agree that they could become instinct? Yes, very much so. But under the false pretenses of the previous author, who gave those exact answers above, to as why banks are forcing out brokers... is so false and misleading. Especially of the comment stating that banks are raising rates on brokers. Maybe that loan officer working for that broker should look at other broker's rates sheets, because their company is charging more in the rate themselves. This also happens.... but the comment in itself is very misleading and false in my opinion.

As I mentioned, yes, rates can vary from investor to investor. I have many friends that are brokers and their rates are just about the same as mine. Sometimes even a 1/4 of point better. So aagin, how can this person make this statement.

Feb 16, 2009 01:45 AM

Anonymous

Steve

Jeff, You have a bit of a logic gap. Risk explains why banks and mortgage bankers make more money than mortgage brokers. However, it doesn't explain why banks are cutting out mortgage brokers. You, also, did not provide any "facts" to explain that reality. The truth is I don't believe there are any "facts" that explain it. Banks have provided reasons, but many of them don't hold up to careful scrutiny. I don't believe in conspiracy theories, but the reality is that the broker model has worked for many wholesale lenders for many years. The fact that some lenders are citing "the model doesn't work" as a reason for terminating wholesale operations sounds fishy. Also, it really sounds arrogant to ask "why don't you want to become a banker." Jeff, there are a lot of us who enjoy being small businesspersons. Many barriers, mostly financial, have been created in the industry to prevent the transition from broker to banker. Frankly, I would like to be a mortgage banker because I KNOW the money is better. (And, yes, the risk is greater.) I have systems and processes in place in my business that I suspect would put most mortgage bankers to shame. So, it's not about inexperience and inability. It's simply that I don't have the financial resources to climb that hill. Take care, Steve

Feb 16, 2009 02:17 AM

#15

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

STEVE.... . you stated, "Risk explains why banks and mortgage bankers make more money than mortgage brokers."

Can you back this up? Could you explain this sentence in more detail? Or is this just myth, just as the myth that all mortgage brokers aren't trustworthy? Do you know that it costs a lot more to be a mortgage banker? More audits, higher fees, higher insurance, the cost of underwriters and closers? Sure, Banks have the ability to make more money.

Overall, curious, because in most of your comment, you talk about mortgage bankers making more money. But that wasn't the gist of my blog post. Please read it again. This has to do with a specific loan officer that works as a broker that wrote a post that stated that banks are trying to get rid of brokers. And then this person sited like 5 reasons to why. Please read these reasons again. The two that stick out the most are :

raise credit scores
raise rates

I find these two statements alone, very false and misleading. And I just spoke with another broker that owns his own shop and agreed with me. The credit scores were raised across the board, not just for brokers, but for mortgage bankers and for banks.

In regards to raising the rates? The rates are the same for the most part, across the board. Yes, some investors are better than others, but it's all the same for both bankers and brokers. And the author never even gave any clarification to this, which makes the statement even worse.

Overall, I am still trying to understand your reasoning for making statements that bankers make more money? There is more risk and more cost, that will usually play itself to a break even point. Sure, they can make a tad more on the back end, as a company, but not as a loan officer. Sure, a banker doesn't have to disclose YSP.... but my YSP is the same in most cases as a brokers. So it's not more money. Besides, again, that is not what this post was about. Please read the middle of this blog again. Thanks for your comment.

Feb 16, 2009 02:47 AM

Robert D. Ashby

Cruise Planners of South Florida - Plantation, FL

Providing Personalized Travel

I wish people would actually read the posts before commenting as it only shows their ignorance. Then again, maybe they are like congress and just are trying to push their "agenda".

First off, I have been in the business for only 6 years, all as a mortgage broker, owner of my own shop for 5 of those 6 years. I have my opinions, and I have a great understanding of how businesses work. the bottom line (IMO) is mortgage brokers will only become extinct if they allow it to happen. Banks and lenders will do things to minimize their abilities, such as closing down their wholesale divisions or placing extra burdens somehow, even by lobbying congress to overly regulate them.

Why? Let's face it, in our current economic crisis, the golden rule applies, that being he who has the gold, rules. On top of that, why wouldn't banks and lenders want to minimize competition? If they can successfully do so, they can increase their own profits and since they all are sucking wind right now, any extra revenues they can generate is that much more breathing room.

Maybe I will do my own opinionated blog on the subject since everyone seems to like the topic and the need to ensure opinion is separated from fact is essential. From the way I see it, aka my own opinion, mortgage brokers will not become extinct, but they will face heavy burdens from one source or another in order to drive many out of business, reduce competition, and ultimately increase profits for those that do remain, even the mortgage brokers that get through this.

Feb 16, 2009 04:08 AM

Robert D. Ashby

Cruise Planners of South Florida - Plantation, FL

Providing Personalized Travel

Oh, I forgot to state I agree with your posts about the need to separate fact from opinion as you have shown.

Many people, not just mortgage brokers, will seemingly overstate facts or distort them somehow to defend their opinions. You hit on two of the bloggers statements (that banks are raising rates and credit scores solely for mortgage brokers) that did just that and readers, especially consumers, need to know the facts. I got off on a tangent above and omitted my own reasons for commenting in the first place, sorry.

Hopefully my point above adds to the factual side of expressing opinions.

Feb 16, 2009 04:31 AM

Ron Withers ----Retired Mortgage Professional

Kissimmee, FL

Jeff,

Enter me. late as usual! :) This has been a good exchange with some excellent views or perspectives. Almost like dissecting the frog in 9th grade biology class by the numbers. I must admit that I am familiar with the post that inspired this follow-on and that my initial speed read did not detect the points you are making. A revisit/interpretation did, in fact, reveal that the author's opinion/ purported facts were misleading. I'm by no means saying this was intentional but they certainly should have better qualified or stated. These things are in fact occurring but not across the board and strictly targeting just the mortgage broker.

Financial services in every sector are "re-inventing" themselves to survive or be able to survive based on what is/will be developing. There has in fact been a large exodus from wholesale and there will be much more before the dust settles. Business models are being changed and tweaked daily. I believe that much of the exiting of wholesale is a financial necessity based on portfolio performance, profit margins, access overhead, foreclosure losses, delinquency trends. So many things! It may be a survival issue that dictates the need for re-capitalization, projected losses vs. new bucks out the door vs. Recover what is out there presently on the books. Buybacks from fraud??

We are in fact navigating unprecedented times!

Feb 16, 2009 07:28 AM

Ron Withers ----Retired Mortgage Professional

Kissimmee, FL

Question...anyone? How come some of our "mugshots" are appearing with our comment? Are we "wanted" for something. :) Why not others?

Feb 16, 2009 07:34 AM

Ken Cook

Content, coding, marketing, host. - Marietta, GA

Content Marketer/Creator

Brokers are marketers. They spend hundreds if not thousands of dollars attractin each client to complete an application. They don't assume as much liability but they DO have liability especially if they received any YSP on the transaction. Trust me, I've paid enough of it back for early pay-offs. Brokers also have liability through other fiduciary responsibility to make the lender whole in the event of fraud and that is not limited to fraud perpetrated in the broker's office and it is not limited to just the broker's portion of the compensation. Banks are definitely squeezing brokers out but not for the reasons enumerated in your counter-author's blog. THEY WANT CONTROL of the deal, period. They are forgetting the thousands of denied files they never see and the cost of originating those - well, they'll soon remember them and someone in Operations with half a brain will say, "I told you morons this method would cost us millions and millions of dollars but no, you had to 'mitigate loss' and do away with the best free marketing program we ever had."

In my opinion, being a mortgage banker, the lenders who continue to fund on TPO paper will be the giants in the industry and the others will be thumbsuckers. Yes, there are morons in the mortgage industry. There are also morons as highly powerful elected officials, police officers, airline pilots, nuclear engineers and athletes. Ken is not happy about the direction of the market and intends to accept all the private funds he can find to continue funding loans and making the funders wealthy in the process.

"Effective Friday February 20th, 2009 PMI has announced they will no longer place mortgage insurance on Third Party Originated (Wholesale [brokered]) loans. All new submissions for PMI, must be reviewed and a MI certificate ordered by Thursday, February 19th, in order to be an eligible loan for PMI. Customers with loans that are currently approved by PMI will not be affected by this change and should continue to submit outstanding conditions on these loans as normal. Flagstar will have a PMI representative on site after Friday, February 20 to review these conditions."

Guess what? Pass-through mortgage bankers who do not hold and service their own paper are next. I had a very interesting meeting with some high powered bankers last week who assure me correspondents are going to be receiving exactly the same treatment as brokers. I have no reason to doubt them. My objective is to stay small, service my own paper and build my own portfolio.

Feb 16, 2009 08:08 AM

Lewis Poretz

Apex Home Loans - Annapolis, MD

Business Development Manager

Ken - you are exactly right. That is what I am hearing as well. In addition to liquidity issues. TPO is TPO. If your not a CW or Wells or Citi you are not a lender........ you may be a "super broker " but your not a "lender" most wind up with those guys anyway........

This crisis seems to be gaining momentum every day 620 minumum on all loans very soon 680 for cash out what the hell???????????

Obama is supposed to roll out a mortgage plan Weds - if those 620 minimums don't go away the plan will be worthless................

Feb 16, 2009 08:15 AM

Anonymous

The only person who consistently puts out their own half-baked opinions as fact is YOU!

Feb 17, 2009 01:55 AM

#24

Juan Boldizsar

Belleville, IL

I've got just one thing to say on this: not ALL mortgage bankers are the angels they claim to be and not ALL mortgage brokers are the devils that mortgage bankers and the media make them out to be.

Here's an interesting little tidbit (based on personal experience) that ought to support my statement:

I did a stint working for American Home Mortgage working in their direct-to-consumer division. Some of the calls we got consisted of portfolio defense overflow. The majority of these calls (a good 90%) consisted of borrowers seeking to refinance their option arms. Of those, every single one of them was originated as a reduced documentation loan. After my conversations with those borrowers, I would compare what they told me with the information in UniFi. The results of those comparisons were jaw-droppers: incomes overstated by factors of anywhere from 1.5 to 6 -- that's right 6.

Now for the juicy part: of those loans, a good seventy to eighty percent of those came through the CORRESPONDENT channel. On top of that, there was not one that I saw which paid SRP of less than 350 basis points. The typical range was 400 to 500 basis points. In one particularly galling case I saw a fellow in California who paid $25,000 for his rate and term refi (indirectly, through SRP) on a $500K loan. Of course, he didn't even know since SRP is not disclosed. Does that suggest, perhaps, that there's a need to extend the transparency of broker compensation to correspondents and their SRP?

In any event, I don't bring this up because I have an axe to grind..... nor is it my intention to paint one or another segment of the industry with a broad brush. Nonetheless, I do feel strongly that the broker-banker dialogue needs some sunshine shed upon it.

Feb 17, 2009 06:43 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

ROBERT.... . I totally agree with you 110%... know wonder we are in such dire straights in recent years. And let me know when you write that blog.

ROBERT.... . hey, you are back. And yes, those two things mentioned definitely hit a spot. To say that banks are raising credit scores and raising rates on brokers is sad information indeed. This person never clarified that the banks have raised their credit scores also. They are trying to minimize risk all around. Those with lower credits have proven that they don't pay on time as much. thanks

RON.... . Thanks for clarifying that. I never said that this author did state those facts on purpose. But I will say this, if they truly believe those statements, then it scares me even more. You kind of have to think how they talk to their clients also. And you hit the nail on the head, portfolio performance is huge. Hence why so many banks are struggling, because of the poor performances of those loans. thanks

RON.... . Ah, back for 25 more points? lol Those mug shots are explained in a post written by Brad Andersohn.

KEN..... . yes, brokers do assume responsibility when they receive YSP, but that's about it. As I mentioned, they receive little risk/responsibility. And I agree, banks are squeezing brokers out, but not based on their statements. Hence why it irritated me and why I wrote this post. Overall, you make some excellent points and thanks for sharing them.

LEWIS.... . you make an excellent point on the cash-outs. Even if many lenders are going to 620, at least you can still do a FHA cash-out to 620, even to 600. thanks

UNKNOWN childish comment...... . it's obvious that you are on Active Rain and I have a pretty good idea who you are. Just sad that if you believe in what you stated, that you can't show your face. WHy is that? PS>.. my half baked opinions as fact? Can you share a few with me? If it's my opinion, I usually state that, so I am not sure how it can be as fact then.

JUAN...... . interesting, because I didn't really see my blog slamming mortgage brokers. I was merely talking about someone that wrote a blog that in my opinion, was very misleading with what they wrote and the answers that they gave. And I will agree, that dishonesty and so many other things took place on both sides of the fence. Just wondering what you actually though of my post instead.

Feb 18, 2009 01:03 PM

Tom Burris

NMLS# 335055 - Baton Rouge, LA

Texas/Louisiana Mortgage Pro - 13 YRS Experience

LOL....

Jeff, if you didn't have jealous trolls following you around then you would then need to worry.

Feb 18, 2009 02:21 PM

Ken Cook

Content, coding, marketing, host. - Marietta, GA

Content Marketer/Creator

Hahaha - jealous trolls. Do they have those on the shelf at Krispy Kreme?

Feb 18, 2009 04:11 PM