yield spread premium: Banning of Yield Spread Premium is Death Knell for Mortgage Brokers
- 08/19/10 04:19 AM
I originated mortgages full time for 5 years in the early 2000s. I worked for both mortgage brokers, who place loans with 3rd party lenders, and, as they are termed in New York, mortgage bankers, who are direct lenders. Up until recently, it was hard for a guy off the street to distinguish between the two- the mortgage application verbiage used and process, to the borrower, was pretty much the same. Even as a loan officer, I saw enormous parallels: the qualifying software was the same, and the rates and pay structure were similar. We either earned money on the front end paid … (29 comments)
yield spread premium: The New York Mortgage Broker Conundrum
- 06/22/10 03:17 PM
I originated mortgage loans from about 2002 until 2006 or so. I considered starting my own mortgage brokerage but decided against it for several reasons, including the growth of my real estate company and the vast changes in the industry after the sub prime crisis. That required more learning than I could spare if I wanted to properly manage my real estate brokerage. I no longer originate mortgages. However, I do know the difference between interest rate and APR. For most of my time in the industry I worked for brokers, not direct lenders. They seemed to me to have more flexibility in … (32 comments)
yield spread premium: New York Times Hates Mortgage Brokers
- 04/11/09 05:51 AM
On the tail of my recent post on the nasty Times report on REO brokers who had to gall to enjoy themselves at a conference, today's Times editorial fires some skud missiles into the hides of mortgage brokers. You should read the editorial to get a sense of both the editors' contempt for, and ignorance of the industry. I have originated loans for both brokers and lenders. I would love to explain to the author how 1+1=2. Obviously, there were and are some bad brokers out there who placed people in bad loans. I see the effects of this myself. Those … (33 comments)
yield spread premium: Why We Need Mortgage Brokers More Than Ever
- 04/05/09 03:51 PM
Miriam Bernstein wrote a post on mortgage brokers that cited a recent New York Times article on the problems facing mortgage brokers. I'd summarize the post as pointing out that now isn't the best time to be a mortgage broker as well as pointing out that brokers are not fiduciaries. Miriam's presentation was flawed in that it came across as unkind to brokers in my view, and judging from the comments, I'm not the only person to feel this way. For the record, I don't think Miriam wanted to knock anyone. Full disclosure: I am technically still a loan officer for a … (4 comments)
Phil Faranda is associate broker and manager for Howard Hanna Rand Realty in Yorktown and Carmel, NY. He joined the brand after being broker and owner of J. Philip Real Estate LLC in Briarcliff Manor, NY for 18 years. Since founding the firm as a sole practitioner in late 2005, the team has grown to over 80 agents & closed 1000+ transactions valued at over $1 billion. He was 2014 President of the HGMLS and a 2017 Inman Influencer. This blog commentary is geared toward consumers and industry colleagues alike. You can reach him at (914) 723-8900. Warning: *Sarcasm and irony advisory at all times.*
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I originated mortgages full time for 5 years in the early 2000s. I worked for both mortgage brokers, who place loans with 3rd party lenders, and, as they are termed in New York, mortgage bankers, who are direct lenders. Up until recently, it was hard for a guy off the street to distinguish between the two- the mortgage application verbiage used and process, to the borrower, was pretty much the same. Even as a loan officer, I saw enormous parallels: the qualifying software was the same, and the rates and pay structure were similar. We either earned money on the front end paid … (29 comments)
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