Ok Ok --- we all know that it is no big deal to sell a mortgage without fees ummmm or points by up selling the interest rate but I think this Bank of America program I have seen all over the TV tonight should be understood. I have not seen first hand a B of A good faith estimate but I plan to. From what I am hearing, B of A, and other mortgage companies I have seen first hand, do not consider line items such as processing or underwriting or the appraisal a fee.
Anyone can sell a loan with zero origination points and call it no fees, even though there are other charges on the Hud. I have recently been solicited by a telemarketing call offering up a 5.25% fixed mortgage with NO points. This was an actual loan officer making the telemarketing call so he peaked my interest into hearing more of his pitch. After playing dumb for a bit I asked him to provide me a good faith telling him I wanted the loan! Of course this "internet" lender would not provide a GFE until he ran my credit - shocker........
Turns out that NO FEES actually meant NO points or at least NO origination points. He finally did admit that there could be discount points to buy the rate down. About 3 discount points he said.
My question is - should B of A or anyone else for that matter be allowed to claim a no fee mortgage while still charing "fees", even though they claim they are traditionally part of the loan. Has anyone seen a B of A good faith they could share with the rest of us. I think it is a great marketing strategy, and being a small shop without a big overhead, I think I could offer a "true" No fee mortgage.
Can the mortgage profession please come to a common understanding that a NO FEE mortgage means that the lender or brokers name does not appear on any line items on a Hud? Let's level this playing field for all of us......
Lewis Poretz
SERVING A COMMUNITY
means being a part of it
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