Check out this EXPOSE!
Borrowers beware when getting mortgage loans from mortgage lenders. Your fees may be higher by as much as 1 point because you DIDN’T shop around or know how to ask for concessions.
Per newsletter by industry-leading HousingWire:
“Two borrowers closed on their homes in North Carolina on the same day in January. One was a first-time homebuyer couple who struggled to get to the finish line. The other was a licensed real estate agent who’s had a couple mortgages before. Can you guess who received more lender-paid pricing exceptions at the closing table? The agent, of course!
“The loan officer (LO) on both deals told HousingWire’s Flávia Furlan Nunes that his lender gives him a certain number of basis points (BPs) he can play with to reduce rates on an as-needed basis. He doesn’t need to ask permission from his branch manager or anyone else to give out free BPs. Since the first-time homebuyers didn’t ‘shop’ him or show any signs they would, he didn’t need to give them much of a discount. He did need to use more PE for the agent client.
“Multiple sources told Nunes that distributed retail LOs often have between 50 and 100 BPs of discounts to apply without permission.
“Apart from the potential concerns related to disparate impact, there’s a practical matter for the lender. There are situations where two loan officers at the same branch are selling the same exact product to the same customer and the rates could be 100 BPs different.
“I’m not naïve. I understand that many retail lenders price high and give their LOs flexibility to compete with the market (which includes their colleagues) in real time. And better-performing (or better liked) LOs will get an advantage over some colleagues. It’s logical and justifiable from a financial perspective. But I think there’s reputational risk that doesn’t get talked about enough.”
For the complete article: Housingwire article pricing-exceptions
When you want to make sure you get the best rate and terms, always call Dan the Man for Mortgages, 714-310-4162.
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