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How to Spot a Good Mortgage Broker
from: Deb St. George - HomelessInKingCounty.comWith the FBI investigating some lending institutions and mortgage brokers, it becomes clear that most brokers do not represent anyone’s interests but their own. Mortgage brokers are regulated by state agencies but are not under any compulsion to get the buyer the best or safest deal. Brokers make money by closing deals for lenders or banks and then taking a commission or fees off the value of the loan from the lender. You may not realize that you are paying the broker, but they are getting paid. Some are getting paid by the borrower and the lender is paying others. In some cases, it was even shown that mortgage brokers might end up getting paid more if they steered clients to mortgage loans that had high prepayment penalties, making it difficult for the borrower to refinance later.
What a Broker Should Do
Mortgage brokers should assess your financial capabilities and try to find a market product that suits your present situation. The problem comes in when they are steering you to products that are risky. You also need to do your own homework in deciding whether any product offered is a good deal or not.
The broker works with a lending institution in providing the paperwork and application forms necessary to substantiate your income and ability to pay the lender. This can include all the copies of your tax returns, W-2s, and bank account statements. Be prepared to give your mortgage broker any type of document they need to apply for your loan.
What a Broker Shouldn’t Do
If you are not in a position to buy a home because of your income, steer clear of any mortgage broker that fudges the numbers. The numbers are set so that you don’t borrow above your means. Lying on a loan can have serious consequences, both legal and financial. So, if you see a discrepancy between what you stated to your mortgage loan officer and the final paperwork, speak up before you sign.
If you are in a fixed rate loan with little incentive to refinance, you may still get brokers who call trying to sell you all the benefits of a refinance. Keep in mind that they are paid to close deals, not necessarily to make sure you get a better deal than the one you have.
The mortgage broker should also provide you with a good faith estimate and the cost of fees assessed to your loan before you close. Any paperwork that is missing or different at closing should be reviewed thoroughly before you sign.
Home Mortgage Lender News
Mortgage Lender Residential Finance Corp. Explains Benefits of HARP 2.0 - MarketWatch (press release)
 eNewsChannels | Mortgage Lender Residential Finance Corp. Explains Benefits of HARP 2.0 MarketWatch (press release) (RFC), a nationwide mortgage lender, which rolled out the new the Home Affordable Refinance Program (HARP) 2.0 program last month, and within three weeks she closed on a new lower, fixed interest rate loan. The recently released new guidelines for the ... New Jersey Refinancing Expert Explains New Home Affordable Refinance Program A strategically missed mortgage payment Clarifying HARP 2.0 Myths |
Foreclosures Plunge to Five-Year Low in US: Mortgages - BusinessWeek
 ABC News | Foreclosures Plunge to Five-Year Low in US: Mortgages BusinessWeek Banks are finding alternatives to home seizures, selling distressed property for less than the amount owed on the mortgage, known as a short sale, or modifying loans for borrowers struggling to keep up payments while an improving economy is helping to ... UPI NewsTrack Business Prospects for housing market get brighter in Shasta County; foreclosures fall ... Foreclosures in Manatee tumble to six-year low |
American Security Insurance Testifies at New York Hearing on Lender-Placed ... - MarketWatch (press release)
 New York Daily News | American Security Insurance Testifies at New York Hearing on Lender-Placed ... MarketWatch (press release) American Security President John Frobose represented the company. Lender-placed insurance is included in the terms of virtually all home mortgages to ensure continuous insurance coverage, as required by lenders, regulators and mortgage investors. House insurance gouge puts homes in danger Forced Homeowner Policies Assailed |
Gateway Mortgage Group Enters Omaha, Neb. With Establishment of New Branch - MarketWatch (press release)
Gateway Mortgage Group Enters Omaha, Neb. With Establishment of New Branch MarketWatch (press release) Geschwender brings more than 25 years experience to his role and most recently was a branch manager with MetLife Home Loans. He has also held the position of branch manager and mortgage origination with First Horizon Home Loans. |
Buffett tried to buy ResCap before bankruptcy: report - Chicago Tribune
 New York Times | Buffett tried to buy ResCap before bankruptcy: report Chicago Tribune (Reuters) - Billionaire investor Warren Buffett sought to buy Residential Capital (ResCap) from Ally Financial before the US auto and mortgage lender put its home-lending unit into bankruptcy, Bloomberg said, citing three persons familiar with the ... Buffett Said to Have Pursued ResCap Purchase Before Bankruptcy ResCap to Stop Funding $1.7 Billion in Home Equity Loans Mortgage Lender ResCap Files Ch.11; To Sell All Assets |
Lenders less leery of reducing homeowners' principal - Kansas City Star
 PBS | Lenders less leery of reducing homeowners' principal Kansas City Star Some economists and politicians have argued for years that the only way to revive the housing market and jumpstart the economy is to vastly reduce the amount Americans owe on their mortgages. But lenders have balked at writing down debts. Principal Reductions Won't Solve US Mortgage Mess Owner Financing Grows in Popularity Leaving Fannie Mae, Freddie Mac As Is Risks Another Housing Bubble |
Mortgage group: Loans past due and in foreclosure at 4-year low - Los Angeles Times
Mortgage group: Loans past due and in foreclosure at 4-year low Los Angeles Times By E. Scott Reckard In another flicker of hope for the battered housing markets, home loans in foreclosure or at least one payment past due have declined to the lowest level since 2008, according to a Mortgage Bankers Assn. delinquency report. |