June 25, 2008
I was finally relaxing and watching a little TV when I noticed an ad from one of the National Lenders come on. The ad said that they could get your client 5.56% Fixed rate loan. They then ran one of those subliminal disclosures, you know the one that the only person who could have read it was that speed reader on the TV Show "That's Incredible".
I went to their website and looked for the disclosure and sure enough there it was. Well they disclose in this that rates are subject to change at any time. Also, they indicated that it was for people who could fully document income and had a 740 middle score. It also talked about discount points and lock in fees.
Although they post in big bold lettering on their ad, 5.56% Fixed, this loan is NOT for the average consumer. In fact, hardly anyone could qualify for it. I have told my Realtor-Partners today that IF they want to let their client go to these companies first, bring me their best Good Faith Estimate, I would beat it by $500. and laugh all the way to the bank.
These companies are just doing the bait and switch with YOUR clients. As a Realtor, you should exercise your fiduciary responsibility and help your clients stay clear of these companies. How much does a National Ad cost? How much does a Regional ad cost? So, who pays for that ad? Your client does. Always use a reputable Mortgage Banker/Broker who is local in your area. It will save you and your client in the long run.
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