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Lender Compensation is Being Targeted - Price Fixing by the Big Banks

Mortgage and Lending with Bay to Bay Lending

Many industry experts feel that by the federal government restricting lender compensation in a manner as currently proposed is as good as price fixing. The federal government does not step in and tell neither doctors, attorneys, accountants nor any other industry how much compensation they can earn on a transaction. What is going on in the bigger picture is that the big banks are trying to push out small business owners and smaller broker/correspondent lenders from the marketplace; commoditizing this industry. In a perfect world, Wells Fargo, Chase, Bank of America and similar banks would like to have a bunch of "Wal-Mart" type associates taking loan applications for minimum wage. Through this process we are allowing them to fix rates and corporate profits and eliminating flexibility and professionalism in a very high skill profession. I can't begin to tell you the number of clients who come to me after working with one of these "bank" style loan officers and I can see the stress leave their body as they start talking to me. I hear daily, "I am so glad that we met you" or "You know what you're talking about so much more than that loan officer from Bank of America, Wells Fargo or Chase" These clients breath a breath of fresh air when they sit down at my desk and see the type of deal I can give them versus these "big box" style banks. In addition, the level of flexibility that I have versus these lenders with the utilization of YSP(Yield Spread Premium) is far more flexible and I can help so many more clients "close deals."  This premium is now disclosed to the borrower and is designed to help borrowers/loan officers in structuring deals and to help support the costs of financing/refinancing/purchasing in situations when closing costs become an issue for the transaction. This process changed in January of 2010, and now the borrowers retain this money. (not the loan officer as in the past) Please see the attached hyperlink and comment/like this article, also please share this article with your friends. The skill of a talented loan officer (MLO - Mortgage Loan Originator) is under fire and the talent at this position will most certainly diminish if we allow the federal government and the big lenders to decide how much money an individual can receive on a transaction. The entire premise of this idea is absurd and the feds need to hear it. Currently the SBA has this legislation under fire as small business owners feel they are being targeted by the big banks and we will not go away without a fight. The idea that businesses can operate at let's say for instance 1% in fees per transaction is ludicrous and simply another way for big banks to control their own destiny. This is only going to allow the larger banks to keep more profit per deal and make it more challenging for the consumer to get the best possible rate/cost on a home loan. The problem is that the federal government is choosing to take the side of the large banks since they are the ones who control so many of our elected politicians through the lobbyists in Washington DC. Please like this article and share it with your friends!




DJ Rondeau

Bay to Bay Lending, L.L.C.

501 South Dakota Ave, Suite 2

Tampa, FL 33606

813-489-5562- Office

813-480-6077- Mobile

813-464-2867- Fax



NMLS Originator ID: 218498

John Combs
Alan Deblat Real Estate Corp. - Oceanside, NY

I just heard about this yesterday and was very surprised. Why would they want to eliminate competition?

Feb 09, 2011 11:14 PM
Dana Bain
Premiere Mortgage Services Inc. - Sterling, MA

Hi DJ:

It is amazing how much damage can be done to small business and the housing market with the implementation of  this terrible ruling.  Never mind the precedent this ruling could be for other professions.  Where has there ever been a ruling by our Government and or "The Fed" that said how much an individual can be compensated.  This needs to get out to the major media ASAP. 


Stop the FRB Compensation Rule 


Please Donate Now!   http://www.naihp.org/component/content/article/61

Dana Bain


Premiere Mortgage Services Inc.


Feb 15, 2011 06:58 AM