Jack M. Guttentag The Mortgage Professor

Yahoo! Finance User - Wednesday, May 28, 2008, 3:57PM ET  Report Abuse

• Overall: 4/5

I have been a mortgage Banker/Broker for 15 years, and what I am saying is wildly unpopular...Here goes...Mortgage Providers should make NO MORE then 2% on any deal period. All third party fees should be charged accordingly. This should be disclosed upfront and this way there would be NO QUESTION. Now the GOOD BANKERS and BROKERS would have no issue with 2%. The bait and switch, rape and pillage shops will cry all day long about 2%. Sadly, the consumer likes the stories told by the bait and switchers. Brokers disclose YSP at settlement; Bankers don't disclose at all. Why is that? I know; no need for the dime store education. Bankers hide behind SRP and the margins when the loan is sold...complete BS. There will be as there always is, those who will argue that Bankers take more risk...more BS. Most Bankers and Brokers are cut from the same cloth. They provide fair and accurate information for a fair and accurate fee. The Scum, and every business has it, has made it tough and will continue to make it tough until the CONSUMER gets smarter in the mortgage transaction. The key to success in the mortgage transaction is to have two smart parties working together. The Homebuyer must be smart enough to know a good deal and the Mortgage Provider must be honest and accurate enough to offer a good deal. If one side is dumb or worse greedy, then the relationship will never be fair.

Yahoo! Finance User - Monday, April 14, 2008, 6:05PM ET  Report Abuse

• Overall: 3/5

I am a mortgage originator who works for a mortgage company that acts both as a directt lender and a broker. A true mortgage professional works in the best interest of his or her clients without regard to his or her professional title as a mortgage broker or mortgage banker. I pride myself on my communication, knowledge, and integrity. I am the mortgage professional whose client base is about 80% referrals from past clients and business partners. To say that a borrower should steer clear of me simply because I may be classified as a "mortgage broker" is silly. One can find poor mortgage professionals in any bank, broker shop, credit union, etc. It is the individual mortgage professional that makes the difference, not the company!! Oh, and solicitation is at least 20% of our business. So to say that a consumer should not utilize my services because I solicited them is also silly!!

Bobbie M - Sunday, April 6, 2008, 1:37PM ET  Report Abuse

• Overall: 1/5

GREED! That's what dominates the landscape. HB's were getting 30% profits on homes and then some MAI appraiser (Made as Instructed) would give them a 100% deal and the stupid mortgage bankers would buy the deal @ full tilt, knowing that the property wasn't worth 80% of the loan. These people call themselves professionals. They are all corrupt and should go to jail. They are the ones responsible for global meltdown. SHAME!!

Kim - Sunday, April 6, 2008, 8:55AM ET  Report Abuse

• Overall: 1/5

Well I'm a mortgage Banker. This article is so untrue. I'm o commission also and we don't fluff anything. Our rates are comparable to yours but we don't add in all the junk fees. Sorry, I've taken alot of your customers who are the smart ones and see through your crap. I agree, mortgage brokers are just another name for car salesman.

Chris - Saturday, April 5, 2008, 12:17AM ET  Report Abuse

• Overall: 4/5

Overall, great article. I've been originating mortgage loans for 10 years. Here's my advice to anyone out there who is interested in a mortgage. Do NOT go online and fill out mortgage inquiries. You will be answering calls for 2 weeks. Brokers spend 50-100 bucks apiece sometimes for these leads, and you may be dealing with people 3 states away, and pushy brokers who are in a hurry to get their money back to say the least. Do NOT call around and ask mortgage companies what there rates are, unless you are willing to have an intelligent conversation with that broker and give up some information. It is impossible to give someone a rate, (especially now in the ever tightening credit environment we are in), without at least looking at your credit and having a really good idea on the loan structure. If I listed all the adjustments the lender imposes on it's rate sheet, (Credit score, Loan to Value, by the way customers rarely know what there homes will actually appraise for..it's much more to it than what the neighbor sold for 18 months ago,and this guessing can affect the rate on your loan, DTI (Debt to Ratio calculations), Cash-out, or Rate/Term adjustors, Loan Amount Adjustors, State Adjustors, Escrow Waivers, and Fannie Mae just passed a couple of fees down to us brokers, that if you don't have above a 720 score, you will see a difference in rate, or I will have to pass that along to you or raise the rate. Sorry, you can thank Fannie for that one. They are making it much harder to make loans to people if you haven't noticed. I could fill the rest of this page, but I think you get the point. Do NOT assume your best deal is at the bank. I assure you, banks have much more overhead than your local mortgage company, and they are not giving anything away. Grant it, If you are a good customer at a particular bank, perhaps you have decent depository accounts balances, other loans (car, HELOC), then banks can go low on closing costs, rates, etc..and be competitive to fight for your business. I guarantee you my rate sheets beat most of our local banks time after time. (Usually by .25-.375 on average. However, this is the one thing you have to remember.....We work on 100% commission. No benefits, no time clock, no employee paid life insurance or health insurance for the most part...your local banker is salaried, and will receive a paycheck whether he originates a loan or not. So be careful if you are shopping around, many a broker work for nothing by educating customers and providing loan options only to have that customer go to their bank. DO get a referral. Referrals are the name of the game, and for brokers who want to be around for the long haul, we can't afford to have a bad name, or be known as someone who costs are high.