Well our wonderful Government is back at it. They are going to try to legislatively remove the compensation for mortgage lenders. Well they are going to "FIX IT" meaning that no matter how much work or effort, or the size of the loan tha LO will need to be paid the same. No doubt this will cause 2 things.
1. there will be less service providers available to the market place
2. prices or costs will be universally increased again.
I recently had a client ask why my fees from the last refinance and this one were so much different. I had to explain how compliance and over -regulation , over caution has made the price of getting a mortgage more expensive. I remember just 4 years ago I was closing loans for $704 in closing costs..including the appraisal. I just closed my brother in laws loan (yes I like him) and his closing costs were an amazing $2200.
We ended up with one appraisal fee HVCC of course..that appraiser gave us crap and we were required to complete a field review. The first appraiser charged us $375 and the field review charged us $450. Of course the value was supported. Over the last six months we have yet to have any appraisal value over turned or reduced, yet we have charged thousands of dollars in review fees for desk and field reviews, This is crazy.
The underwriters are under attack from the investor that rejects the loan based on an AVm and the games begin. This has caused underwriters to almost ask for a desk review as a standard Operating Procedure, just to insulate themselves and the company from future problems.
This problem is and was caused by POLITICIANS. it can not be solved by the same dinosaurs.
Barney,Nancy, Chuck and the other Tax cheats like Charley should go to jail like the rest of us "commoners" would..imagine if you hid 1.3 million in unreported income.....AMAZING
Comments(0)