Mortgage Broker is "broker"
- Thread starter Capricious
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I appreciate the sentiments y'all and your defense on your stand on Southern and Sowal manners. Most people know I call it like it is, and I don't beat around the bush on some issues that I feel strongly about. If Little Fish considers that rude, well that's his perogative.
The Mortgage Reform Bill was not simply about YSP. There were many other facets to it, but LF, you strictly limited your discourse to YSP and your position. The mortgage broker industry has consistently had to defend YSP when some politrician is looking to make a name for him/herself and tries to assert that it's a nefarious compensation.
It always gets shot down, not just by lobbyists for the Mortgage Industry, but by many Consumer Advocates. The reason, it would eliminate competition in the marketplace which is not to the consumers benefit. Consumers can shop rate by APR, make comparisons of Good faith Estimates where YSP is disclosed. There's even a section about it in a HUD Booklet (HUD-A government agency) required by law to be provided on a purchase transaction of a primary residence which states on page 23, and the shortened version... clearly says, these fees (YSP) are included in the interest rate. They are not an additional cost to you. /end
So by shopping rate and terms, since in essence YSP can be a component of rate offered, one can search for the best deal for their loan scenario. Little Fish you asked why put a spread and not the exact YSP? It changes daily, sometimes multiple times in a volatile market. Further, if you haven't locked and are floating rate, one may decide at a later point to pay a combo of discount points/and or origination point(s) and the YSP would be lower or nil. This is quite often the case with ARMS. A Broker needs to put the spread as Brokers are audited by the Banking Dept. The quoted YSP can not exceed what was paid, so initially the highest possible will put in to guarantee compliancy. The exact YSP also appears on the commitment letters when issued and in FL you get it disclosed precisely again prior to closing.
Is the whole settlement process easy to understand? No, by any means. I'm not sure that there is a simpler way. There are so many facets to the transaction for consumers to absorb. I'll also never negate the fact that there is abuse of the system. Statistics have shown that African Americans and Hispanics typically are receiving higher rates and some even paying loan origination fees. I've done consulting for major Banks and met with Mortgage Brokers throughout New York State. My survey found a lack of education on behalf of the loan officers who could have placed loans qualifying as prime into subprime, as well as just sheer abuse of the lack of understanding of the consumer. Couple this with steerage to select appraisers, title agents and the like, and you have a recipe for Mortgage Reform Bills, however, I do not feel eliminating YSP in the long haul will benefit the consumer. The entire Mortgage reform Bill was not shot down, the YSP portion was.
and BB, we'll get you a glow pink highlighter so YSP can be seen from Mars.
The Mortgage Reform Bill was not simply about YSP. There were many other facets to it, but LF, you strictly limited your discourse to YSP and your position. The mortgage broker industry has consistently had to defend YSP when some politrician is looking to make a name for him/herself and tries to assert that it's a nefarious compensation.
It always gets shot down, not just by lobbyists for the Mortgage Industry, but by many Consumer Advocates. The reason, it would eliminate competition in the marketplace which is not to the consumers benefit. Consumers can shop rate by APR, make comparisons of Good faith Estimates where YSP is disclosed. There's even a section about it in a HUD Booklet (HUD-A government agency) required by law to be provided on a purchase transaction of a primary residence which states on page 23, and the shortened version... clearly says, these fees (YSP) are included in the interest rate. They are not an additional cost to you. /end
So by shopping rate and terms, since in essence YSP can be a component of rate offered, one can search for the best deal for their loan scenario. Little Fish you asked why put a spread and not the exact YSP? It changes daily, sometimes multiple times in a volatile market. Further, if you haven't locked and are floating rate, one may decide at a later point to pay a combo of discount points/and or origination point(s) and the YSP would be lower or nil. This is quite often the case with ARMS. A Broker needs to put the spread as Brokers are audited by the Banking Dept. The quoted YSP can not exceed what was paid, so initially the highest possible will put in to guarantee compliancy. The exact YSP also appears on the commitment letters when issued and in FL you get it disclosed precisely again prior to closing.
Is the whole settlement process easy to understand? No, by any means. I'm not sure that there is a simpler way. There are so many facets to the transaction for consumers to absorb. I'll also never negate the fact that there is abuse of the system. Statistics have shown that African Americans and Hispanics typically are receiving higher rates and some even paying loan origination fees. I've done consulting for major Banks and met with Mortgage Brokers throughout New York State. My survey found a lack of education on behalf of the loan officers who could have placed loans qualifying as prime into subprime, as well as just sheer abuse of the lack of understanding of the consumer. Couple this with steerage to select appraisers, title agents and the like, and you have a recipe for Mortgage Reform Bills, however, I do not feel eliminating YSP in the long haul will benefit the consumer. The entire Mortgage reform Bill was not shot down, the YSP portion was.
and BB, we'll get you a glow pink highlighter so YSP can be seen from Mars.
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:funn:
Lil Fish hasn't been back in a while...
Was this abyatching?
Looks like the Little Fish got a little broiled.
I don?t know anything about Mortgages, but I do know that Mango is welcome to hang out on the beach with me any day.
And you are welcome to get as rude as you want???..
I don?t know anything about Mortgages, but I do know that Mango is welcome to hang out on the beach with me any day.
And you are welcome to get as rude as you want???..
Brilliant minds discuss ideas; Average minds discuss events; Weak minds discuss people.
Could use some editing; Bold minds inact ideas; Creative minds change events; Open minds listen to people.
Could use some editing; Bold minds inact ideas; Creative minds change events; Open minds listen to people.
Corrupt minds screw people on both sides.
Whew! I'm glad that's over!
Read everything from "threatened to beat my face in" to the prime time sparring between Mango and Little Fish, and then finished off with the input from those who seem to know Mango well.
As a disinterested bystander, I think both Mango and Little Fish made good points, however, I think we all recognize how difficult it is to communicate adequately with mail. A wrong phrase or word here and there can be easily misunderstood and lead to retaliation without just cause. I dare say that if Mango and Little Fish were to have had this conversation over coffee at a friend's house the discussion and debate may have ended with both understanding the other a little better. Who knows, it may have resulted in the start of a new friendship?
I hope we don't have any more sly comments about either Mango or Little Fish from other readers. Obviously, if you know one or the other then your comments will favor that person at the expense of the other one. To the uneducated reader who has never spent time in SoWal, this sounds parochial. I don't think SoWal can afford that tag when it is in need of home buyers.
My 10c for what they're worth. Merry Xmas to all.
Read everything from "threatened to beat my face in" to the prime time sparring between Mango and Little Fish, and then finished off with the input from those who seem to know Mango well.
As a disinterested bystander, I think both Mango and Little Fish made good points, however, I think we all recognize how difficult it is to communicate adequately with mail. A wrong phrase or word here and there can be easily misunderstood and lead to retaliation without just cause. I dare say that if Mango and Little Fish were to have had this conversation over coffee at a friend's house the discussion and debate may have ended with both understanding the other a little better. Who knows, it may have resulted in the start of a new friendship?
I hope we don't have any more sly comments about either Mango or Little Fish from other readers. Obviously, if you know one or the other then your comments will favor that person at the expense of the other one. To the uneducated reader who has never spent time in SoWal, this sounds parochial. I don't think SoWal can afford that tag when it is in need of home buyers.
My 10c for what they're worth. Merry Xmas to all.