Real Mortgage Rate and Tip For Today
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Today’s Real Mortgage Rate - Transcribed
“Good morning I’m Terri Ewing and today is December [...]

First, just know that all banks are lenders. So that means the Wells Fargos and Bank of Americas of the world are mortgage lenders….not mortgage brokers.
Then we have a hybrid…a broker with a line of credit that legally gets treated like a bank for the purposes of disclosing rate bump income…yield spread [...]

Mortgage Bank Defined
A mortgage bank is a retail mortgage originator that sells loans directly to the public and funds those loans with their own money. Unlike a mortgage broker who also sells loans directly to the public but must use the funds of a wholesale lender to close, a mortgage bank uses its own [...]

Wholesale Lender Defined
A wholesale lender provides the money for a brokered mortgage at closing. They also underwrite the mortgage and make sure it has all the required documents and is within the guidelines. A wholesale lender is in between the originator and the final investor.
They produce rate sheets for retail originators to price [...]

Mortgage Broker Defined
A mortgage broker is the middle man between you and a wholesale source that funds your loan. The wholesale source is called a wholesale lender. The mortgage broker brings you and the wholesale lender together.
A mortgage broker’s big claim to fame is the ability to shop your loan to [...]

Here’s the whole story:
“The mortgage broker that we used to buy our home did not disclose a 2.5% YSP before the day of signing and we have since lost the home to foreclosure. We have all the docs that say what the interest rates were supposed to be, and then the jacked up rates [...]

Well, let me start by saying, I am not an attorney nor should this be construed as legal advice. However, if a deal goes horribly wrong, through no fault of the customer, and you can show actual damages, it’s worth pursuing with a qualified attorney.
The problem arises in the fact the mortgage broker has no [...]

I am afraid it is not that simple.
Finding an “honest” mortgage broker is part knowing how to interview them and part “keeping them honest” by demonstrating your knowledge. In other words, the brokers (even the good ones) are willing to over-charge, if the client shows no real knowledge of how loans are priced, locked, [...]