joeconsumer.info — Here’s what you need to know about how mortgage brokers really work: “When I have a client I really don’t like — he’s a pain in the ass — that’s when I charge as much as I can get out of them,” says Jack, a mortgage broker based in Southern California. Find out how mortgage brokers screw you and how you can fight back!
Jan 31, 2008 View in Crawl 4
Closed AccountJan 31, 2008
Rent!
gdlawsFeb 1, 2008
Actually, the APR is useless. There is No Offical Calculation Published by HUD or anyone else for how to calculate APR, as a Result, it varied pretty wildly. We are only Required to get it within a 1/4 of the actual APR whatever that is. If you want to Know your not getting Ripped off Look at the HUD 1. You can see how much money in dollars are going to each party and that is the most useful piece of information. Also, if your going to Negotiate the Fees/Origination, Don't do it until you are quoted a rate. LO's will price at a lower rate if they think they are getting an Origination so let them tell you the rate, then ask them to take a 1/2 point off the origination.PS. I am a Marketing Director for a Mortgage Bank.
Closed AccountFeb 1, 2008
There is a lot of truth to this. My general tip is to go with the person that is prepared to sit down and educate you the client, rather than brush you off with "trust me, I'll take care of all that". The more trust someone is given, there more likely they are to abuse it. By getting the broker to go through the process from start to finish, asking questions on anything you do not understand, this has two benefits, (a) you are able to protect yourself from the broker trying to pull anything further down the line because it suits him and (b) it serves as an interview to check the broker really does know his stuff. A good agent or broker is more than worth the money they earn, and can save you a fortune, but there is no shortcut to finding the best one. Research and ideally personal references are the way to go.Phillip.
orangetikiFeb 1, 2008
Moral of the Story: Rent an apartment. At least I should. I'm not married, nor will I have kids anytime soon.
silveravntFeb 1, 2008
Same with lawyers but we all know what the norm is.
silveravntFeb 1, 2008
I did not use a broker. I went directly to banks.
deadsenatorFeb 1, 2008
As a former loan officer for a brokerage, I have to agree with you. Most loan officers were on the up-and-up, but not all. I did see plenty of greasy real estate agents, though. As far as the "kickback", I usually got less than one percent back from the lender, but this was how I made my money. The LO fee and the rebate were split with the brokerage. I did not get a salary. The money distribution in a brokerage can determine how a loan officer approaches a loan. Typically, I found that if I quoted a fairly competitive rate, I was happy with the minimalist rebate. I made a little money (not a lot), and the borrower was happy with a great rate. No reason to be greedy on one transaction, in my book. A happy customer will bring back loads of business for you. Most of my business was referrals from word of mouth advertising.Shady appraisals should be another area of interest. How all these homes can appraise for exactly what the borrower wants is a bit odd, in my opinion, as it further escalates the inflation of the housing market, but that is another discussion.
whojaybeFeb 2, 2008
Damn those mortgage brokers!!!
mhmdkhamisJun 29, 2008
if you were a pizza salesman and you spent 30 days making one pizza and you could only feasibly make 4 pizzas a month with the amount of time it takes to make a pizza and the customer was a real a-hole who had you make the pizza but also let you know he is 'shopping you' with 3 other pizza makers you would probably spit in his pizza.. wouldn't you<a class="user" href="http://xn--ugb6bax.xn----ymcae0df5a6fo.com/people/">http://xn--ugb6bax.xn----ymcae0df5a6fo.com/people/</a><a class="user" href="http://xn--ugb6bax.xn----ymcae0df5a6fo.com/islam/">http://xn--ugb6bax.xn----ymcae0df5a6fo.com/islam/</a><a class="user" href="http://xn--ugb6bax.xn----ymcae0df5a6fo.com/health/">http://xn--ugb6bax.xn----ymcae0df5a6fo.com/health/</a>
mortgagerhJul 22, 2008
Wow, I read the article and many of the responses. My first thought was that the techniques mentioned to rip off the client have never even crossed my mind. I entered this business because in previous businesses I never felt as though I was helping anyone. My job is to help not hurt! I love my job, I like and respect my clients, and at the end of the day I'm proud of the work i do. Even in this very difficult lending environment my thought is to work harder, be smarter, and provide exceptional customer service, not to devise new ways to rip off the client. I look at each loan as the begining of a family tree. If I provide a competitive rate, low costs, and provide exceptional service I'll reap the rewards of referrals and a growing family tree. I'm personally embarassed by the article and will continue to conduct myself professionally and work for and in the best interest of my clients.........and i have the references and referrals to prove it.
aabjoraDec 7, 2008
Amazing article... It truly showed the author?s understanding of the mortgage world.(c) <a class="user" href="http://www.mortgagerefinancingloanz.com/">http://www.mortgagerefinancingloanz.com/</a>
quriFeb 2, 2010
I always watched the tricks of the broker.
darkknightza0Apr 2, 2010
I have more knowledge then. It is true that you told.<a class="user" href="http://re-mortgage-best.blogspot.com/" rel="nofollow">http://re-mortgage-best.blogspot.com/</a>