When Lenders Compete, Who really wins?

By
Mortgage and Lending with Wasatch First Financial
An ongoing lawsuit against a website that allows advertisers to post their rates, suggests that when lenders compete, you still may not get the best rate. The lawsuit alleges that lenders post rates so low they can't honor them. Then when the borrower is committed to the loan, they switch him or her to a higher rate. That higher rate is often worse than the honest rate offered by other lenders. This all starts out by a home owner going online to shop for a new mortgage loan. Most of the time when online shopping for a loan you come across what is called a Lead Broker Site. Lead Broker Site's usually advertise saying things like 'When Lenders Compete You .........etc. etc.' Lead Broker site's usually push the idea of shop for the best rate, or Let lenders compete for your business. For full article refer to my blog at www.edbbates.blogspot.com

Comments (3)

Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Ed,  I began my career with these leads.  The funny thing is if you were not one of the first two lenders to call the prospect you weren't going to even get to talk to the prospect.  They already told the first two callers what they wanted.  So, by the time the 3rd or 4th person called they were disinterested.  Funny how going online to let people compete over your business seams like a good idea at the time.  But, when the prospect has to jump through the hoops of competition they really nolonger care. Using these leads is a horriable way to build a career but, I again a lot of experienced by using them.
Feb 03, 2008 04:09 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Welcome back to ActiveRain!

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Aug 19, 2015 12:48 PM
Christine Gerbehy
Berkshire Hathaway Home Services Fox and Roach Northfield - Egg Harbor Township, NJ
Making waves, one home at a time...

Hey!  I see you haven't been on inawhile, you should stop back!  Lots of good info here on AR...

Jan 05, 2016 01:39 PM