Mortgage Companies / Banks

[NC211]

OP, there really is no such thing as a no-cost (fees) mortgage loan. If you're being sold a no-cost, then you're paying that fee with a slightly higher interest rate on the loan itself and the lender is getting paid that way. There are disclosures out there now to point out the lender fees in the good faith estimates, but over time, they too have become complicated and glossed over to the average borrower who doesn't quite understand it. Just remember, you don't work for free, and neither do the loan officers.


I say that however without taking into consideration the VA loan program (I applaud your service to our country!) That is a different program and widely known for higher LTV's and low fees to assist the military members with getting a home loan.


And, it's been nearly 15 years since I've dealt with residential mortgages in general, so my caveats might be outdated a little. But the "nobody works for free" theory is very much applicable in this scenario.

[SmartMoney]

Originally Posted by NC211

OP, there really is no such thing as a no-cost (fees) mortgage loan. If you're being sold a no-cost, then you're paying that fee with a slightly higher interest rate on the loan itself and the lender is getting paid that way. There are disclosures out there now to point out the lender fees in the good faith estimates, but over time, they too have become complicated and glossed over to the average borrower who doesn't quite understand it. Just remember, you don't work for free, and neither do the loan officers.


I say that however without taking into consideration the VA loan program (I applaud your service to our country!) That is a different program and widely known for higher LTV's and low fees to assist the military members with getting a home loan.


And, it's been nearly 15 years since I've dealt with residential mortgages in general, so my caveats might be outdated a little. But the "nobody works for free" theory is very much applicable in this scenario.

The latest player to the game is the credit union. Credit unions are 501 3c (non profit). Let that sink in, no profit to be made off your loan. Sure, I get paid, but it's nowhere close to what McLean and others pay their people, probably half. How do I know? Friends and recruiting calls. Why do I stay where I am at? I like being able to do loans outside the box and across the country. I make it up in loan size (up to 3M). Lately, Southern California and Houston has received most of my attention, with Florida peppered in. No make up the pay in volume. There's nothing better than being 3/8% to 3/4% in rate. I don't have to worry about losing the loan and can concentrate on getting it to closing. (This gap in interest rate may not be on 30 yr fixed, but yesterday, on a 1.5M 10/1 ARM, no one was even close to me). But my point is, get a quote from a CU. Many are open access (anyone can join). Your bank account may thank you.

If the OP was a vet (sorry, can't get there right now), please get quotes from NFCU and PenFed. Both have improved customer service in the past 12-24 months and have refocused on service.

[FCNova]

Originally Posted by SmartMoney

Sure, I get paid, but it's nowhere close to what McLean and others pay their people, probably half.

The proof is in the pudding. People really should just go with whoever gives them the best deal on a mortgage, especially if it comes from a company somebody gave them a personal recommendation for. From my experience credit unions don't offer better rates/lower fees than for-profit banks, unless you're getting a specialized deal because you're a vet or something similar. And if that's the case, who cares how much profit your lender is making, as long as they're giving you the best deal and they make the process smooth and painless.

[Abraham Walker]

Originally Posted by SmartMoney

The latest player to the game is the credit union. Credit unions are 501 3c (non profit). Let that sink in, no profit to be made off your loan. Sure, I get paid, but it's nowhere close to what McLean and others pay their people, probably half. How do I know? Friends and recruiting calls. Why do I stay where I am at? I like being able to do loans outside the box and across the country. I make it up in loan size (up to 3M). Lately, Southern California and Houston has received most of my attention, with Florida peppered in. No make up the pay in volume. There's nothing better than being 3/8% to 3/4% in rate. I don't have to worry about losing the loan and can concentrate on getting it to closing. (This gap in interest rate may not be on 30 yr fixed, but yesterday, on a 1.5M 10/1 ARM, no one was even close to me). But my point is, get a quote from a CU. Many are open access (anyone can join). Your bank account may thank you.

If the OP was a vet (sorry, can't get there right now), please get quotes from NFCU and PenFed. Both have improved customer service in the past 12-24 months and have refocused on service.

What mortgage company do you work for?

Are you located in NOVA?

[NC211]

Originally Posted by SmartMoney

The latest player to the game is the credit union. Credit unions are 501 3c (non profit). Let that sink in, no profit to be made off your loan. Sure, I get paid, but it's nowhere close to what McLean and others pay their people, probably half. How do I know? Friends and recruiting calls. Why do I stay where I am at? I like being able to do loans outside the box and across the country. I make it up in loan size (up to 3M). Lately, Southern California and Houston has received most of my attention, with Florida peppered in. No make up the pay in volume. There's nothing better than being 3/8% to 3/4% in rate. I don't have to worry about losing the loan and can concentrate on getting it to closing. (This gap in interest rate may not be on 30 yr fixed, but yesterday, on a 1.5M 10/1 ARM, no one was even close to me). But my point is, get a quote from a CU. Many are open access (anyone can join). Your bank account may thank you.

If the OP was a vet (sorry, can't get there right now), please get quotes from NFCU and PenFed. Both have improved customer service in the past 12-24 months and have refocused on service.

I am very familiar with the CU environment. I actually started out my CRE lending career on the credit union side, and we were so good at it that we were cited as an example by the ABA for why credit unions shouldn't be 503c's anymore, and they drafted HR bill whatever number to congress to make sure the cap on "business lending" as a low % of total assets would remain. I remember Zion's Bank trying to get into our HQ facility under the false pretense of coming to show us how they can help us underwrite commercial mortgages. What they were really doing is acting as a snoop for the ABA, coming to HQ's and then reporting on how much the "non profit" was spending on their new office digs.


But ultimately the pay wasn't there for me to continue on that side. In NC, it was just too low to support a family without my wife continuing to work full time (we actually met at the CU, and nearly all of the mortgage and business lending divisions were at our wedding!). Nobody knew we were dating until one day (3 years later) she come walking in with a diamond on her finger. Surprise!

[SmartMoney]

Originally Posted by Abraham Walker

What mortgage company do you work for?

Are you located in NOVA?

I am happy to share the info with you and will be in touch via DM with a cup of coffee in hand. I was sincere stating I am not here to drum up business, but I can say there's far more ammo to support CU's do offer lower rates/fees. Fannie Mae standard late fees are 5%, all of our loans are 2% (not that I am welcoming late fees). Search on the web for mortgage insurance rates. Then search for mortgage insurance rates for credit unions. .10% per month adds up and compounds. Credit unions are non profit organizations. No paid board of directors. Sorry, (for the naysayer), lower rates and fees are the first thing that attracted me to this place. You also need to know what you are looking at, too, below the surface. Additional benefits keeps me here. The signing bonus I could get to go to a for profit lender approsches six figures if I wanted to sell my soul. Uh, no. I feel like I am working for a savings and loan of old, when you pick up the phone to discuss a borrower scenario before the loan comes in. Who do you think is paying for that signing bonus? Borrowers.

[SmartMoney]

Originally Posted by NC211

I am very familiar with the CU environment. I actually started out my CRE lending career on the credit union side, and we were so good at it that we were cited as an example by the ABA for why credit unions shouldn't be 503c's anymore, and they drafted HR bill whatever number to congress to make sure the cap on "business lending" as a low % of total assets would remain. I remember Zion's Bank trying to get into our HQ facility under the false pretense of coming to show us how they can help us underwrite commercial mortgages. What they were really doing is acting as a snoop for the ABA, coming to HQ's and then reporting on how much the "non profit" was spending on their new office digs.


But ultimately the pay wasn't there for me to continue on that side. In NC, it was just too low to support a family without my wife continuing to work full time (we actually met at the CU, and nearly all of the mortgage and business lending divisions were at our wedding!). Nobody knew we were dating until one day (3 years later) she come walking in with a diamond on her finger. Surprise!

Of course the ABA wants to shut down and take away the 501 3c from CU's! They see profit they think they should have. I do not bank where I work, but I do bank at a credit union.

My bosses have always had a hard time figuring me out. I've never been driven by money, the average sales model is do more, more, more. Anyone in sales can tell you what they are closing that month without looking it up - they run those numbers over and over. I'm superstitious, I can tell you what files are closing, but not how much. Don't get me wrong, I want to make enough to pay the bills and put something aside, but even during the mortgage crisis, it hadn't been an issue, I am very grateful.