Mortgage Broker is "broker"

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.

Lil Fish hasn't been back in a while...

Was this a byatching?

:funn:

Lil Fish hasn't been back in a while...

Was this a byatching?

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???..

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.

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.

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.

They'd have a wonderful conversation as long as Little Fish kept his hands off Mango's wallet.

They'd have a wonderful conversation as long as Little Fish kept his hands off Mango's wallet.

Bob, you're too much. I can't even find my wallet in my big handbag.

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.

The only thing "parochial" are two? separate screen names, who just so happen to have join dates in October as well, and a post from Beachcoma yesterday who apparently has been doing some research on the mortgage industry.

"From what I have been reading it would seem that in future, a buyer who puts up less than 30-40% equity (or wants to finance more than 70%) will face some additional charges and fees and may also have a higher interest loan.
I would think that the largest demographic of potential buyers for SoWal properties would not have had any credit problems under even the strictest of yesterday's standards but if these new rules come into effect it will reduce the size of this demographic considerably."

or this post from the Rosemary Beach article:
All potential buyers of SoWal real estate should read these posts - puts the "warm, welcoming beach community atmosphere" description in a whole new perspective.

and from Little Fish who started this thread, Preconstruction Appraisal Process noting an anonymous posters issues with a preconstruction condo in PCB looking for information on how to salvage that deal and get around the appraisal process.

It seems to me neither one of you, or you, just do not get Sowal and the small home towne community feel and beauty, not only of it's real estate, but the people who inhabit it. It seems y'all post only on threads where your criticisms are the sole underlying purpose. It's quite glaringly obvious.

Happy Holidays!

Mango, Mango, Mango. You have fertile mind, I must say! From your posting record (almost 10 per day since you joined the site) it would seem that you also have a lot of spare time (or you don't sleep much).

What was that old saying about the Devil finding work for idle hands???? (this is not a suggestion that you are evil).

For the record, if anyone cares, my comments on these pages are mine and mine alone. I have only one screen name. I do not know anyone else who posts here. My comments are merely observations relative to what I read here and should not be taken personally. I have no hidden agendas. I have stayed with friends in the SoWal area several times (they do not post here, and as far as I know don't even know this site exists). I like the SoWal area and I am considering buying property along 30A. I am not a mortgage broker, banker, financier, speculator, landlord or real estate agent. Most people who know me think I am a reasonable person, honest and hard working.

Most important, I have no desire to get into any back and forth "he said she said" posts with another poster. I don't have the time, but quite honestly find this kind of thing interesting but only minimally informative and something that usually leads to name calling when one or the other posters "feels" as if he or she has been insulted or bested. Additionally, I have no desire to help anyone improve their posting average.

I hope this gives you a bit more insight into who I am. I will read anything you or anyone else cares to write relative to this post but I will not respond on this subject as I now consider the case closed.

Thanks and Happy Holy Days to you also.

Mango, Mango, Mango. You have fertile mind, I must say! From your posting record (almost 10 per day since you joined the site) it would seem that you also have a lot of spare time (or you don't sleep much).

What was that old saying about the Devil finding work for idle hands???? (this is not a suggestion that you are evil).

For the record, if anyone cares, my comments on these pages are mine and mine alone. I have only one screen name. I do not know anyone else who posts here. My comments are merely observations relative to what I read here and should not be taken personally. I have no hidden agendas. I have stayed with friends in the SoWal area several times (they do not post here, and as far as I know don't even know this site exists). I like the SoWal area and I am considering buying property along 30A. I am not a mortgage broker, banker, financier, speculator, landlord or real estate agent. Most people who know me think I am a reasonable person, honest and hard working.

Most important, I have no desire to get into any back and forth "he said she said" posts with another poster. I don't have the time, but quite honestly find this kind of thing interesting but only minimally informative and something that usually leads to name calling when one or the other posters "feels" as if he or she has been insulted or bested. Additionally, I have no desire to help anyone improve their posting average.

I hope this gives you a bit more insight into who I am. I will read anything you or anyone else cares to write relative to this post but I will not respond on this subject as I now consider the case closed.

Thanks and Happy Holy Days to you also.

I love the declarative "I now consider the case closed" posts..this is the third I have seen I believe during my short tenure here. They really give me a chuckle. You too Beachcoma can increase post count so you will not feel so envious. Give up a session of self-abuse each day and you can post at least 4 times. And multitask! Whereas before you had a time block for dedicated nosepicking you can now type with one hand and point at your brain with the other. Theres 8 more posts right there. Oh and remember to always pick and flick, that can't be repeated enough in your case. See? No name calling .

All:

To summarize how you can get a better deal the next time you use a mortgage broker to secure financing, I recommend the following:

1) Tell your broker you want 100% of the YSP applied to your closing costs and you want this fully reflected on the GFE.
2) Negotiate your broker fee and have 100% of that fee listed under line item 808 (Mortgage Broker Fee) of the GFE.

If you do both of the above, you will control the fee you pay to your broker. In my example, I paid roughly 0.5% as a broker fee, which would have been much worse had I not negotiated. Some brokers take fees of 2% or more from unsuspecting clients. Don't let this happen to you.

Little Fish

What if you choose a rate that precludes YSP? Whose wallet will you try to grab then, Little Fish? A good broker can beat your local banker's rates everyday, and offer more than ten times the loan programs to fit your needs. A good broker coordinates between the Realtor, appraiser,insurance and closing agents so that no one party botches up the closing. You want the best rate, you want the broker to work for one half percent, and you want any renumeration for his/hers efforts paid by the lender to go into your pocket? Tell me, who do you think is responsible for paying back YSP if the loan is paid off early? Have a clue? It's the broker, not the weasel client stealing the YSP because he thinks someone should pay his closing costs. You know enough to be a nuisance. I can only hope HR takes your Christmas bonus for the office party, and delivers you a letter stating that any possible quarterly losses will come out of your 401k. Then you'll know how "your broker" felt about your deal.

All:

If you do both of the above, you will control the fee you pay to your broker. In my example, I paid roughly 0.5% as a broker fee, which would have been much worse had I not negotiated. Some brokers take fees of 2% or more from unsuspecting clients. Don't let this happen to you.

That's not what you did. You didn't pay a Flat Broker fee. You locked the rate you wanted then backdoored your broker later on YSP. The rate structure could easily be changed after a Borrower locks, so you also could have asked for the rate from the date your locked that had 0 YSP (which the rate would have been lower thus lowering your rate and caps) and just paid the Broker Fee of .50%.
Instead you wanted the money for closing costs, so you still have not made an argument against eliminating YSP as your earlier posts have stated.

Bob, this isn't worth getting your knickers in a twist over. We both know that in all likelihood he stated on his application that this would be a second home to avoid the upcharge for investment property purchases.
Cheers!

That's not what you did. You didn't pay a Flat Broker fee. You locked the rate you wanted then backdoored your broker later on YSP. The rate structure could easily be changed after a Borrower locks, so you also could have asked for the rate from the date your locked that had 0 YSP (which the rate would have been lower thus lowering your rate and caps) and just paid the Broker Fee of .50%

A clear-cut case of "Predatory Borrowing!"


.

A clear-cut case of "Predatory Borrowing!"


.

Good chuckle before I snooze.

A clear-cut case of "Predatory Borrowing!".

:rofl: Enough said.

That's not what you did. You didn't pay a Flat Broker fee. You locked the rate you wanted then backdoored your broker later on YSP. The rate structure could easily be changed after a Borrower locks, so you also could have asked for the rate from the date your locked that had 0 YSP (which the rate would have been lower thus lowering your rate and caps) and just paid the Broker Fee of .50%.
Instead you wanted the money for closing costs, so you still have not made an argument against eliminating YSP as your earlier posts have stated.

Bob, this isn't worth getting your knickers in a twist over. We both know that in all likelihood he stated on his application that this would be a second home to avoid the upcharge for investment property purchases.
Cheers!

That would be treating the lender as he treated the broker.

That's not what you did. You didn't pay a Flat Broker fee. You locked the rate you wanted then backdoored your broker later on YSP. The rate structure could easily be changed after a Borrower locks, so you also could have asked for the rate from the date your locked that had 0 YSP (which the rate would have been lower thus lowering your rate and caps) and just paid the Broker Fee of .50%.
Instead you wanted the money for closing costs, so you still have not made an argument against eliminating YSP as your earlier posts have stated.

Bob, this isn't worth getting your knickers in a twist over. We both know that in all likelihood he stated on his application that this would be a second home to avoid the upcharge for investment property purchases.
Cheers!

I arrived late to this party and after reading the entire thread last week, was prepared to write a long essay regarding all of Little Fish's statements but decided not to post it.

Bob makes a great point regarding the YSP and Little Fish's assertion that it's HIS money. YSP is a commission paid by the lender directly to the broker. The lender will never pay YSP directly to a buyer - only the broker can agree to pay costs on the settlement sheet that in effect would amount to using YSP to do it. BUT, if a borrower pays the loan off early (time varies by lender), the lender may ask the broker to return the YSP. It certainly wouldn't be the borrower being asked to pay it back.

I did a little quick research on Jumbo 7/1 interest only investment property rates (5/2/5) on the date Little Fish said he locked (Nov 26) and of the several wholesale lenders I looked at, NONE had anything close to that 6.125 rate paying 1.0 YSP, or even 0.5. Par rates (meaning little or no YSP) on that loan product for investment property ranged from 7.0-7.5%. I must say that I did not have access to Chase's rates but from experience, and in my opinion there is no way that Chase offered a rate on the same product/property type (investment) that was close to a full point lower than these other lenders par rates AND paid 1.0 YSP - repeat - NO WAY. If Little Fish's broker got that rate for him, the broker deserved 1.0 YSP.