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Many lenders now require the broker to disclose his Yield Spread Premium on the Good Faith Estimate. We require it, and I know Countrywide Wholesale does, too. If the broker's disclosures did NOT disclose his YSP, we make him redisclose to the borrower prior to closing.
Quote:
Originally Posted by djtroy
- ask the broker up front what he will be making in total fees. Then if you are going to be in the house longer than 5 years tell him you want the "par rate" That means he won't raise your rate and get paid from the lender by selling you a higher rate. (you will only see the YSP paid to the broker on the HUD. He does not have to disclose this on the GFE)
Many lenders now require the broker to disclose his Yield Spread Premium on the Good Faith Estimate. We require it, and I know Countrywide Wholesale does, too. If the broker's disclosures did NOT disclose his YSP, we make him redisclose to the borrower prior to closing.
I know that Countrywide did not make me disclose anything about YSP (this is in my pipeline right now). I have cleared all my stips and there was no mention of the YSP on any of my GFE's. In fact they made me redisclose because the original rate was not the lock in rate but they did not ask me to show YSP. Where would you show YSP on a GFE anyways? You dont need to mention it in the brokerage business contract either and that is a serious disclosure of your fees.
I know that Countrywide did not make me disclose anything about YSP (this is in my pipeline right now). I have cleared all my stips and there was no mention of the YSP on any of my GFE's. In fact they made me redisclose because the original rate was not the lock in rate but they did not ask me to show YSP. Where would you show YSP on a GFE anyways? You dont need to mention it in the brokerage business contract either and that is a serious disclosure of your fees.
I worked at Countrywide before where I am now, and if the file was submitted without the YSP being disclosed, we made the brokers redisclose. My wife is in the Charlotte office, and she said this is still their practice. She said to let her know which files are yours and she'll be sure to send them back for you to redisclose in the 800 section of the GFE... LOL
edited to add Just realized you are in South Florida and probably don't send your files up here.
I worked at Countrywide before where I am now, and if the file was submitted without the YSP being disclosed, we made the brokers redisclose. My wife is in the Charlotte office, and she said this is still their practice. She said to let her know which files are yours and she'll be sure to send them back for you to redisclose in the 800 section of the GFE... LOL
edited to add Just realized you are in South Florida and probably don't send your files up here.
My files go to Deerfield Beach FL
I think there is some confusion as to the YSP disclosure. My GFE says 0-3% YSP but there is no way on an initial discolsure that I would know how much I am making because I have not locked the rate yet. I have 0-3% in the bottom to cover the auditors but I do not disclose actual dollar amounts and percentages because I have no idea what they are until the loan is locked and I don't lock it until I get the GFE back signed. Kinda funny how that works. To me having 0-3% is not really a disclosure its more of a dislaimer. Basically I do not disclose YSP in the 800's because there is no section for it there.
Its all a big mess really. I just tell my borrowers what I need to make and we figure it out from there whether its charged in the front or back.
I guess what im trying to say and I am not arguing with you because we are both right. I have aloan with 0-3% disclosed and not an actual dollar amount paid to me by the lender. But im sure thats going to soon change with all the dishonest brokers out there.
My files go to Deerfield Beach FL
I think there is some confusion as to the YSP disclosure. My GFE says 0-3% YSP but there is no way on an initial discolsure that I would know how much I am making because I have not locked the rate yet. I have 0-3% in the bottom to cover the auditors but I do not disclose actual dollar amounts and percentages because I have no idea what they are until the loan is locked and I don't lock it until I get the GFE back signed. Kinda funny how that works. To me having 0-3% is not really a disclosure its more of a dislaimer. Basically I do not disclose YSP in the 800's because there is no section for it there.
Its all a big mess really. I just tell my borrowers what I need to make and we figure it out from there whether its charged in the front or back.
I guess what im trying to say and I am not arguing with you because we are both right. I have aloan with 0-3% disclosed and not an actual dollar amount paid to me by the lender. But im sure thats going to soon change with all the dishonest brokers out there.
There ya go--- I should have said we require brokers to disclose that there WILL be a YSP via showing a small range on the GFE. I'm not sure what CW's exact requirements are, but we have to have the brokers be more specific than 0-3%. Brokers most of the time have an idea of what they are planning to make on the back end, so putting a more exact range like 1-2% is what we look for.
Funny enough, we didn't use to require ANYTHING about YSP be disclosed on the GFE, but we've gotten hit with compliance errors (perhaps these are internal compliance regulations) that have cost the branch.
There ya go--- I should have said we require brokers to disclose that there WILL be a YSP via showing a small range on the GFE. I'm not sure what CW's exact requirements are, but we have to have the brokers be more specific than 0-3%. Brokers most of the time have an idea of what they are planning to make on the back end, so putting a more exact range like 1-2% is what we look for.
Funny enough, we didn't use to require ANYTHING about YSP be disclosed on the GFE, but we've gotten hit with compliance errors (perhaps these are internal compliance regulations) that have cost the branch.
Ya compliance gets pretty confusing sometimes. I am by no means a processor but I had to learn real quick with my last job. I have managed to dodge the audits but im sure they are no
fun.
I am required to show YSP on the GFE and HUD as a broker...but most borrowers dont care what you make as long as they have the lowest rate possible.
It would be foolish for a borrower to agree on how much a broker will make.
I generally beat out most lenders with my rates, but if a borrower tells me I am making 'too much' money...then they're speaking to the wrong broker.
A broker's job is to find the best rate, and best product for their customers.
Banks or direct lenders are not required to disclose YSP on anything.
Banks make a lot more money than brokers do on a given loan.
I would find it amusing to see a borrower telling the Bank...you are making too much money!
Hi, I've been told by the closing attorny's office to bring an extra 2-4k to the closing in case there are costs higher than what's on the GFE. I'm locked, points are disclosed, loan funded etc. What could this be about, anyone know? Can I walk away, since I never knew about 2-4k extra expense so never agreed to them?
Can't reach anyone since it's holiday....and everyone left early. Set to close Tuesday and this doesn't seem right.
loan funds at the closing table....how is it funded??
the attorney or lender can send you the final HUD-1 which discloses all fees.
this is VERY suspicious.....they are required to provide the HUD-1 only IF you ask for it....and they need to send it to you 24hrs before closing.
Quote:
Originally Posted by sliding_into_homebase
Hi, I've been told by the closing attorny's office to bring an extra 2-4k to the closing in case there are costs higher than what's on the GFE. I'm locked, points are disclosed, loan funded etc. What could this be about, anyone know? Can I walk away, since I never knew about 2-4k extra expense so never agreed to them?
Can't reach anyone since it's holiday....and everyone left early. Set to close Tuesday and this doesn't seem right.
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Higher costs than what's on GFE
