Mortgage brokers heard rare support from the nation’s top banking regulator, John M. Reich at the National Association of Mortgage Brokers Legislative & Regulatory Conference in Washington, D.C..

Some of the nice things said by Mr. Reich about mortgage brokers were:

Washington Mutual Mortgage along with eAppraiseIT, their appraisal firm, was accused of over inflating the appraisal values of homes by New York’s attorney general, Andrew Cuomo.

Washington Mutual Mortgage allegedly colluded with eAppraiseIT, an appraisal management subsidiary of First American Corp. to “meet the numbers”. The lawsuit said that eAppraiseIT succumbed to pressure from Washington Mutual Mortgage to use appraisers who overvalued homes allowing the bank to close more home loans.

Yield Spread Premium (YSP) is without a doubt the most misunderstood and highly profitable secret the mortgage industry has kept from the American mortgage consumer.

The government’s own number pegs the consumer cost of the yield spread premium deception at $16,000,000,000 a year

…yes that’s billion, with a “b”! My own figures put it into the hundreds of billions of dollars since the government’s numbers were woefully short-sighted.