I read a blog post today on Cyberhomes blog (an excellent website and blog, by the way). It's latest post is titled "Searching For Good Mortgage Brokers" .
In the post, the author writes, "For people who worry about finding a reputable broker (e.g., one who won't steer you into a loan with hidden exorbitant fees so he can collect higher compensation), there's a website you can try." The website is called upfrontmortgagebrokers.com.
This is the website for the Upfront Mortgage Brokers Association (UMBA). The home page of the website states that it was "founded for consumer advocacy" a noble goal. It also states on the home page "Most professional associations are formed to further the interests of the individuals forming the organization. Members of UMBA are mortgage brokers whose interests are fully aligned with those of the consumer.
Association members believe that, in serving the public interest, they will be working toward a better profession, which, ultimately, will further their professional/personal goals."
I am not a member of this association. This is not an attack on the association or its members. My question is whether this association is relevant any more.
Here is why I ask this question: On the home page of their website there is a link for consumers to click on that says "Why Choose An Upfront Mortgage Broker". On this PDF, it states "the key element of the UMB commitment is the requirement that the fee for the UMB's services be negotiated and established at the start of the mortgage process."
The reason I ask if UMB's are relevant is because of the amount of disclosure that we have to do as mortgage brokers in terms of our compensation.
First, we have to send out a Good Faith Estimate with our fees disclosed. We also have to have separate forms signed that disclose our fees again before we can submit our files to our lending partners. I think by the time we have submitted the file, our clients are very clear in terms or our compensation.
Maybe I am missing something. Again, this is not an attack on upfront mortgage brokers. But it seems to me that the government and our lenders have taken care of consumers in terms of mortgage broker fee disclosures.
Here's a question for you for you mortgage bankers - how come there is no upfront mortgage banker association? Mortgage bankers don't have to disclose how much they are compensated.
I typed in "upfrontmortgagebankers.com" into my browser. It said "sorry page not found".
As a service to my mortgage banking buddies, I went on register.com to see if upfrontmortgagebankers.com is available. It is! Here's your chance to bring full disclosure to consumers!
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