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 Mortgage Insurance solution for mortgage brokers! View next topic
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MarxBrother
Cherry Bomb


Joined: 07 Feb 2008
Posts: 164

Re: Mortgage Insurance solution for mortgage brokers!
PostPosted: Thu Feb 19, 2009 3:35 pm Reply with quoteBack to top

FIXMYLOAN wrote:
AN LO, not a LO.


Hmmm... are you sure? LO = "loan officer" or "loan originator". My understanding was always that if you would call someone "a loan officer", you would write it as "a LO" if you are abbreviating. "an Loan Officer" would clearly not be correct.

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Do_the_math
The WhistleBlower


Joined: 14 Mar 2007
Posts: 2564
Location: Groovy Town

Re: Mortgage Insurance solution for mortgage brokers!
PostPosted: Thu Feb 19, 2009 5:24 pm Reply with quoteBack to top

Image

The question of suitability for borrowers is a fiduciary issue. Although few mortgage brokers are legally held to a fiduciary standard, if the broker (or loan officer) is in the position of "trusted advisor", the borrower's best interests should always prevail- even if it means directing the borrower to another source.

However, a broker who is an intermediary only and not an advisor, is not typically required to put the borrowers best interests first. This is why mandatory broker relationship disclosures are needed. It is important for borrowers to know whose interests their "trusted advisor" serves, and the legal standard of care they are owed.

Whether an agent or intermediary, a huge problem facing brokers is obtaining their FHA approval. This has put many independent brokers in a position where they have had to either drastically modify their business model or forego FHA. Others simply defy FHA regulations and do whatever they want after they obtain their approval. There are still a ton of brokers who don't have or can't obtain their FHA approval.

FHA has interfered with the borrower's right to obtain exclusive representation (which is afforded under the Code of Federal Regulations and the FHA guidelines) by failing to recognize agency representation as a compensable service. To make matters worse, FHA refuses to allow borrowers to offset the cost of their exclusive agent via loan proceeds, seller credit or YSP. Consider that FHA brokers are always the agent of the lender and do not typically owe borrowers a fiduciary duty- nor do they have to disclose it.

I bring this up because with the mounting opposition to TPOs (which is deserved by some), many brokers are going to be forced into the role of intermediary or completely out of business. Brokers should be able to be compensated for offering borrowers counseling/advisory services only and not be limited to the role of glorified loan processor. I am not saying that non approved brokers should be able to "originate" loans which entails processing and QC functions. I am saying that non-approved brokers should be able to negotiate FHA loan terms on the borrowers behalf and assist the borrower with their loan application. Borrowers should never be forced to deal with the agent of the lender (which is what all FHA approved brokers are) or accept dual agency- or worse yet, no representation at all. This is where the industry has to change or evolve.

The industry cannot demand suitability and then restrict brokers from offering key programs- or holding them hostage by forcing them to change their business model. The industry also cannot expect brokers to behave as fiduciaries when it doesn't demand or recognize that standard.

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MortgageDrummer
Dyn-o-mite!


Joined: 19 Nov 2008
Posts: 310

Re: Mortgage Insurance solution for mortgage brokers!
PostPosted: Tue Feb 24, 2009 5:07 pm Reply with quoteBack to top



Why doesn't anyone blame the bureaus for selling local mortgage companies client information to aggressive lead companies? That's where all of the preditory lenders got their info to contact our local community. Do they really care if the borrower is in a payopt arm or ninja loan? Will these people in another state care about our local client loosing their home? Will these people see our local community/residents in the store or at sporting events. Do these telemarketers go to school with our kids? Do they really care????? Why doesn't anyone address that??? That has been my biggest complaint for along time when my client would come into my office after I would take a loan app. and from that point forward they would be harrassed, bothered, lied to, told they could get a better deal with them. . and oh yeah!!! Here is your payment (opt arm) will that work for you sir??? Car salesman?? Oh, and guess what he has never read a tax return in his life. . so now it's better to go stated and get the bigger house too!! What the h*** were you all thinking when you bought a lead. . do you really care about the client?? enough said!!! Crying or Very sad
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sleepless-in-Seattle
Cherry Bomb


Joined: 04 Jul 2008
Posts: 148

Re: Mortgage Insurance solution for mortgage brokers!
PostPosted: Wed Mar 11, 2009 10:18 pm Reply with quoteBack to top

I thought I'd read somewhere that Assurity's warehouse line is with National City. Is this correct? If so, what's the plan???
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Lisa11
Flash in the pan


Joined: 14 Jan 2009
Posts: 26

hi
PostPosted: Fri Mar 27, 2009 10:13 am Reply with quoteBack to top

What it DOES mean, though, is that FHA market share will grow as a percentage of overall originations, in my opinion. Unless HUD comes out with some announcement that FHA mortgage insurance won't be offered on TPO loans (which I would gauge as highly unlikely since they actually have the mission of increasing homeownership in America), FHA lending will be alive and well for the broker community!!!


Lisa11
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Peteisonline
Dud?


Joined: 10 Jun 2009
Posts: 3

I think the post should stay
PostPosted: Wed Jun 10, 2009 3:45 pm Reply with quoteBack to top

I think the post should stay, he had something informative and truthful to say. Then you make the thread spam, by posting something calling it spam. Honestly, so what if people promote their business on the side through informative posts. What's wrong with that. If there were never any angles, nothing would ever get accomplished.

I am not very knowledgeable when it comes to the technical jargon associated with mortgages. I do know that I signed a contract with a great rate on a mortgage that saved my financial life. I just thought I would let you all know to not be afraid to get a mortgage. It's better than losing everything. Anyhow, the site I used for my mortgage is in my signature.

Pete
http://www.buy-to-let-centre.co.uk

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InSight07
Dud?


Joined: 01 Jul 2009
Posts: 5

Re: Mortgage Insurance solution for mortgage brokers!
PostPosted: Wed Jul 01, 2009 3:50 am Reply with quoteBack to top

RE Assurity:

From what I see as an LO - all you do is tighten, and tighten more, and then more again...not good...

One can say that that is foresight...but if you are the only one doing it, I call it a "sinking ship"...

Foresight is intuitive reasoning regarding changes that must be made pursuant to legislation or purchasing changes that Ginnie Mae is making...

My knowledge is that you are only a small seller in the secondary market and not a direct seller to Ginnie Mae...so, therefore: you are at the whims of your investors.

Best of luck,

InSight

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