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Old 06-14-2009, 06:23 PM
 
Location: South Charlotte
1,435 posts, read 5,222,025 times
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Quote:
Originally Posted by chicagocubs View Post
Well, if a bank employee is going to a mortgage broker, there must be something else going on...bad credit...something, because bank employees traditionally get discounted rates and no origination fees. it would be crazy for them to go to a broker and spend all that extra money....


I have 3 clients within the last year who worked for BoA and Wachovia all that were highly qualified to buy go through mortgage brokers on their purchases.

Their interest rates were at least .5% better in the end and the service was much, much better.
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Old 06-14-2009, 07:16 PM
 
1,039 posts, read 2,666,883 times
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Quote:
Originally Posted by chicagocubs View Post
Probably the issue was that you did both; brokering and dealing with a bank directly. In essence, you were a mortgage broker for the client.

If a client deals with a bank directly, there are none of these shenanigans that go on. The rate is the rate. There is NO YSP...up front, on the back, anywhere.
I hate to be arguementative but this is just not the case. Banks can and do charge YSP but it would not wind up anywhere on the loan paper work as they do not have to disclose it. As an underwriter for a bank you may not even see anything to do with YSP. Maybe they do not do it with every case but when they can they do. If the LO knows you would be happy with a 5.00% rate and they figure out you can qualify for a 4.75% they can/do (sometimes) give you the 5.00% and earn the extra $$$ from the bank. I worked for regional bank. We wrote bank loans where we did not have to disclose YSP and we wrote loan for tons of other lenders as brokers where we did have to disclose. The ridiculous thing was it was on the back of the RESPA and said something like "YSP .25% - $2,000". When asked LO's were told to explain it was a fee for writing the loan paid by the lender. Yes the money did not come out of the client's pocket but it did in the long run in the form of additional interest. You are mistaken to assume bank are somehow above board in regard to lending practices. As a whole the lending industry gets away with murder. It depends entirely on a LO with intergrity to not take advantage of the system. In my few months a saw very few time when an LO did the "right thing" rather than the $$$$ thing.
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Old 06-14-2009, 08:31 PM
 
Location: Charlotte, NC
7,041 posts, read 13,107,177 times
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Quote:
Originally Posted by gkleoni1 View Post
I hate to be arguementative but this is just not the case. Banks can and do charge YSP but it would not wind up anywhere on the loan paper work as they do not have to disclose it. As an underwriter for a bank you may not even see anything to do with YSP. Maybe they do not do it with every case but when they can they do. If the LO knows you would be happy with a 5.00% rate and they figure out you can qualify for a 4.75% they can/do (sometimes) give you the 5.00% and earn the extra $$$ from the bank. I worked for regional bank. We wrote bank loans where we did not have to disclose YSP and we wrote loan for tons of other lenders as brokers where we did have to disclose. The ridiculous thing was it was on the back of the RESPA and said something like "YSP .25% - $2,000". When asked LO's were told to explain it was a fee for writing the loan paid by the lender. Yes the money did not come out of the client's pocket but it did in the long run in the form of additional interest. You are mistaken to assume bank are somehow above board in regard to lending practices. As a whole the lending industry gets away with murder. It depends entirely on a LO with intergrity to not take advantage of the system. In my few months a saw very few time when an LO did the "right thing" rather than the $$$$ thing.
I would tend to agree that the LO is not always in the best interest of the customer, but, they have more to loose if caught (they loose their job). And, the bank that I work at, the rate is generated by the computer using the client's score, bank relationship, etc. The LO does not have the option to pad it or change it in any way. Now, they are paid according to the loan amount and that may be where they "cheat the system" by talking clients into getting a larger equity line. Although now in underwriting, that is being clamped down on since we have to account for all of the $$$ in the equity line.
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Old 06-14-2009, 08:33 PM
 
Location: Charlotte, NC
7,041 posts, read 13,107,177 times
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Quote:
Originally Posted by Charlottean View Post
I have 3 clients within the last year who worked for BoA and Wachovia all that were highly qualified to buy go through mortgage brokers on their purchases.

Their interest rates were at least .5% better in the end and the service was much, much better.
never said that all bank employees were geniuses. With the automatic .50 bps discount that they would have received at their bank and no fees except for the third party fees, they would have beat that measly .50 lower rate by a long shot.
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