Home Buying in 33305>Question Details

 Andrew, Real Estate Pro in Miami, FL

How do I know if my mortgage broker is being truthful on the HUD-1 GFE?

Asked by Andrew, Miami, FL Tue Apr 16, 2013

My adjusted origination charge is a flat $1350. Is it possible she is also getting a YSP from the lender as further compensation but not disclosing it, and I will see it on the closing HUD form? I feel like she can give me a better interest rate, but is not doing so and pocketing the extra commission from the YSP.

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12
When you receive a GFE, ANY POC's (paid outside of closing) MUST be disclosed or someone's in violation. In addition, you should have received an Itemization of Fees and Truth in Lending. The IOF has a column marked POC/PTC's this is specifically for the Broker (if you are using one) to disclose their LO Compensation. There is nowhere to hide anymore. If you don't have complete faith in your Loan Officer, I would suggest either speaking with her or remember, it's never to late to bring in a pinch hitter (hope you know what that means) who can bring it home.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
2 votes Thank Flag Link Tue Apr 16, 2013
No, it is illegal for any entity (originator, broker, lender) to be paid by the borrower and any other entity at the same time. Each loan must be EITHER borrower paid, OR lender paid. But the details you provide in your question do not contain the answer to whether you are paying, as a borrower paid loan, or the lender is paying, as in lender paid loan. Your origination charge is not merely "a flat $1350" , it is a NET $1350. Either a lender paid or a borrower paid loan can have a specific net cost. But the bottom line is that origination charges on a loan cannot be paid by both the borrower and the lender at the same time. There is no "extra" commission.
0 votes Thank Flag Link Tue Jan 27, 2015
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Agent below wrote...."You may have already received a copy of the Good Faith Estimate from your discount mortgage broker and are finding that the actual closing costs and fees are nowhere near what you were promised."

YOU GOTTA BE KIDDING ME!!! I'm not sure where this agent has been since April of 2010, but we in the mortgage industry all know the HORRENDOUS and ABSURD over regulations that we're all having to deal with!

Its amazing to see posts from some who seem to be clueless as to all the new rules and laws in lending (i.e. RESPA, MIDA, Dodd Frank Reform Act, etc.) that the Origination Charge quoted can not increase, NOT even 1 red cent!

Where have they been over these past years?

read this here: http://www.trulia.com/blog/steve_31/2012/05/the_fall_and_now…

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0 votes Thank Flag Link Wed Apr 17, 2013
You may have already received a copy of the Good Faith Estimate from your discount mortgage broker and are finding that the actual closing costs and fees are nowhere near what you were promised.
0 votes Thank Flag Link Wed Apr 17, 2013
Watch her nose. If it grows, she lies.
0 votes Thank Flag Link Tue Apr 16, 2013
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Now that is a different story.

See, because Banks and Lenders close in there own name, they are allowed to HIDE what's called SRP (Service Release Premium) or Overage.

Its an extremely uneven playing field as it makes it look like Mortgage Brokers charge points, but the bottom line is usually the Mortgage Broker can offer the best terms and/or the creative loan that get the job done.

Click below to understand what really goes on:

http://www.trulia.com/blog/steve_31/2012/08/service_release_…

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0 votes Thank Flag Link Tue Apr 16, 2013
Yes, it seems like that's what's going on. i did a little research and some mortgage "brokers" are acting as lenders and thus enjoying the loophole in the law so they don't have to fully disclose what they charge the borrow.
Flag Tue Apr 16, 2013
Question:
The Real Estate Broker is acting as your lender or the Mortgage Broker is acting as the lender?
0 votes Thank Flag Link Tue Apr 16, 2013
The mortgage broker is acting as the lender, then will immediately sell the loan after the close. They will then pocket the SRP.
Flag Tue Apr 16, 2013
In this case , I found out that the broker is also acting as the lender. They will fund the mortgage, then quickly resell it. I'm sure they're doing this to make a bunch of money at my expense. I figure that since the broker is the lender, they don't have to disclose the full commission. They are charging me the $1350 loan origination fee, which they have disclosed. My guess is that they are charging me a higher interest rate to maximize their commission when they resell it.
0 votes Thank Flag Link Tue Apr 16, 2013
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And anyone telling you about YSP likely has just enough completely outdated and irrelevant knowledge od how things USED to be to cause issues where otherwise there are none!

Question:== Did you even ask for one dime of the 6 points in completely FOREFIETED Tax Free home equity in real estate commission?

On a 300,000 purchase, the Tax Free equity going to the realtors is $18,000.00= approx. $25,000 of a person's Gross Pay

On the loan amount of approx. ----1/4 of a million dollars---.125% difference in rate is a Whopping Tax Deductible approx. $17.00 mo in payment, this on a loan that the borrower likely won't even have after 60 anyway!

$18,000.00 of Tax Free Home Equity vs. a tax deductible $17.00 mo, and you are worried about what the Mortgage Broker is making?

Its like worrying about a gnat while a tiger eats your legs! lol

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0 votes Thank Flag Link Tue Apr 16, 2013
Thanks for your responses. They are helpful in my understanding. Since I'm the buyer, I don't understand how this loss of equity from the real estate commission affects me? Isn't the seller paying that 6%?
Flag Tue Apr 16, 2013
If you see smoke, and you think there is fire; beware.
The best thing you can do with a GFE, is to get another one:
Compare the two documents.
0 votes Thank Flag Link Tue Apr 16, 2013
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You want to learn the truth about how things really are?

Read here: http://www.trulia.com/blog/steve_31/2012/08/service_release_…


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0 votes Thank Flag Link Tue Apr 16, 2013
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UMMMM....NO!!!

Those days are over! He or she CANNOT get a Flat Fee from you AND money from the lender too, not even 1 cent!!

This is an absurd rule from this Nasty Dodd Frank Reform Act that has eliminated options for consumers and causing borrowers to have to come out of pocket with money they prefer not to come to closing with.

Its also causing many deals to not close!

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0 votes Thank Flag Link Tue Apr 16, 2013
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