Comments on: Washington State Legislative Alert: SB 6381 and SB 6452 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: shelley safronek http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-330820 shelley safronek Mon, 29 Dec 2008 19:21:45 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-330820 I think this is a great opportunity for us to differentiate our advantages over a bank. We have several 30 year fixed rates to choose from and we all know that some borrowers will qualify for the better rates and some will not. This is where the education of the borrower comes in. I have been an originator for over 18 years and I do know my value. I have no problem with a borrower knowing what I make as I earn every penny! Realtors have been getting clients to sign an agreement with a 6 to 7% commission rate since the beginning of time. I don't think my 1 to 1.5% YSP/origination fee combined is out of line. I provide alot of value to a client that they will not receive if they go to a bank. There is something to be said to work for a commission vs. working for a salary. Look at the motivation of government employees???? Where is the incentive to go the extra mile. I think this is a great opportunity for us to differentiate our advantages over a bank. We have several 30 year fixed rates to choose from and we all know that some borrowers will qualify for the better rates and some will not. This is where the education of the borrower comes in. I have been an originator for over 18 years and I do know my value. I have no problem with a borrower knowing what I make as I earn every penny! Realtors have been getting clients to sign an agreement with a 6 to 7% commission rate since the beginning of time. I don’t think my 1 to 1.5% YSP/origination fee combined is out of line. I provide alot of value to a client that they will not receive if they go to a bank. There is something to be said to work for a commission vs. working for a salary. Look at the motivation of government employees???? Where is the incentive to go the extra mile.

]]> By: Proposed RESPA Reform | Seattle's Rain City Real Estate Guide http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-316487 Proposed RESPA Reform | Seattle's Rain City Real Estate Guide Mon, 28 Apr 2008 09:37:39 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-316487 [...] to YSP, the proposal mirrors similar proposed state legislation. I had been wondering why the state legislation on YSPs had stalled in the house. Now I know why: It would just be preempted by federal law. HUD is [...] [...] to YSP, the proposal mirrors similar proposed state legislation. I had been wondering why the state legislation on YSPs had stalled in the house. Now I know why: It would just be preempted by federal law. HUD is [...]

]]> By: Randall C Frost http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-312403 Randall C Frost Mon, 21 Apr 2008 20:13:49 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-312403 I have no problem disclosing anything. I don't mind following the rules, as long as I know what they are. It is difficult to disclose ysp when the rates change four times a day? When a Broker/LO originates a loan, a GFE is provided. In case someone does not know it, a GFE is an estimate of closing costs. What part of Estitmate don't people understand. Once a loan is locked, which is mighty hard to do early in the loan these days, we are more able to know what the profits will be. Why is this a problem? I have no problem disclosing anything. I don’t mind following the rules, as long as I know what they are. It is difficult to disclose ysp when the rates change four times a day? When a Broker/LO originates a loan, a GFE is provided. In case someone does not know it, a GFE is an estimate of closing costs. What part of Estitmate don’t people understand. Once a loan is locked, which is mighty hard to do early in the loan these days, we are more able to know what the profits will be. Why is this a problem?

]]> By: Dale Uesonoda http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-307650 Dale Uesonoda Tue, 15 Apr 2008 01:15:17 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-307650 These bills are good but I'm not sure how much of an edge they may give brokers over banks. It just seems from a consumer standpoint, banks regardless if held to a lower standard, will still be attractive to consumers simply for the locality, name and generic reputation. Banks are used more on a day to day basis for many purposes and so the convenience factor is there. The bills passed dont cross their minds, just impulsive in most cases and marketing. Needless to say, the bills will just make it an even playing for professionals. These bills are good but I’m not sure how much of an edge they may give brokers over banks. It just seems from a consumer standpoint, banks regardless if held to a lower standard, will still be attractive to consumers simply for the locality, name and generic reputation. Banks are used more on a day to day basis for many purposes and so the convenience factor is there. The bills passed dont cross their minds, just impulsive in most cases and marketing. Needless to say, the bills will just make it an even playing for professionals.

]]> By: Casey Camby http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-291498 Casey Camby Mon, 24 Mar 2008 01:24:38 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-291498 One of my attributes is that I love to beat the banks on interest rate. I fully support this bill because of your above mentioned reasons. I as a mortgage broker have the ability to 10 out of 10 times beat any major banks interest rate. I also have the ability to charge no origination fee and make YSP for someone looking for a shorter term investment. When practiced properly by either party we don't get near section 32 loan fee limits. the bank actually tells us when we break these limits and won't allow us to proceed with our borrower receiving that high of cost or rate. Every loan I've ever done has been different, what should differ is our fiduciary duties and responsibilities. I believe that should be an area of emphasis that isn’t being hit on enough (not in this class but as a whole for our profession). One of my attributes is that I love to beat the banks on interest rate. I fully support this bill because of your above mentioned reasons. I as a mortgage broker have the ability to 10 out of 10 times beat any major banks interest rate. I also have the ability to charge no origination fee and make YSP for someone looking for a shorter term investment. When practiced properly by either party we don’t get near section 32 loan fee limits. the bank actually tells us when we break these limits and won’t allow us to proceed with our borrower receiving that high of cost or rate. Every loan I’ve ever done has been different, what should differ is our fiduciary duties and responsibilities. I believe that should be an area of emphasis that isn’t being hit on enough (not in this class but as a whole for our profession).

]]> By: C Seal http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-287667 C Seal Tue, 18 Mar 2008 22:47:27 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-287667 I wholeheartedly agree with Jillayne that the loophole needs to be closed on consumer loan lenders licensed under the Consumer Loan Act. All brokers should have similar requirements to level the playing field, and to keep the consumer safe. Both bills passing would be good for the industry. Even though banks won't have the same rules yet, I believe a selling point to the customer would be differentiating our product from a bank's product by letting them know exactly how and what we are paid for our services. Everything else is paid back to them. By informing customers what they are paying for, you will earn their trust and repeat business. I wholeheartedly agree with Jillayne that the loophole needs to be closed on consumer loan lenders licensed under the Consumer Loan Act. All brokers should have similar requirements to level the playing field, and to keep the consumer safe.
Both bills passing would be good for the industry. Even though banks won’t have the same rules yet, I believe a selling point to the customer would be differentiating our product from a bank’s product by letting them know exactly how and what we are paid for our services. Everything else is paid back to them. By informing customers what they are paying for, you will earn their trust and repeat business.

]]> By: Gina Kwon http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-285219 Gina Kwon Sat, 15 Mar 2008 08:26:19 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-285219 I think both bills will be great for the mortgage brokers, but what about the banks? Shouldn't in all fairness, they be held to the same standards? I also agree with Jillayne that LOs working under mortgage brokers should be held accountable as well, but that will hopefully be taken care of on a self-regulated basis by their handling brokers (we can hope). As more bills like this come to pass, hopefully the industry as a whole can start cleaning itself up. I think both bills will be great for the mortgage brokers, but what about the banks? Shouldn’t in all fairness, they be held to the same standards? I also agree with Jillayne that LOs working under mortgage brokers should be held accountable as well, but that will hopefully be taken care of on a self-regulated basis by their handling brokers (we can hope). As more bills like this come to pass, hopefully the industry as a whole can start cleaning itself up.

]]> By: Gina Kwon http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-285216 Gina Kwon Sat, 15 Mar 2008 08:24:52 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-285216 I think both bills will be great for the mortgage brokers, but what about the banks? Shouldn't in all fairness, they be held to the same standards? I also agree with Jillayne that LOs working under mortgage brokers should be held accountable as well, but that will hopefully be taken care of on a self-regulated basis by their handling brokers (we can hope). Both of these bills seem to be a step in the right direction though for the industry as a whole. I think both bills will be great for the mortgage brokers, but what about the banks? Shouldn’t in all fairness, they be held to the same standards? I also agree with Jillayne that LOs working under mortgage brokers should be held accountable as well, but that will hopefully be taken care of on a self-regulated basis by their handling brokers (we can hope). Both of these bills seem to be a step in the right direction though for the industry as a whole.

]]> By: Roger Ingalls http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-273951 Roger Ingalls Fri, 29 Feb 2008 20:53:15 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-273951 The Fiduiciary bill was moderately marked up in the House, and looks like it's headed for passage. Thanks to Phoung Cat Le at the PI for keeping this in the news. http://blog.seattlepi.nwsource.com/consumersmarts/archives/132983.asp Main change is that brokers are not liable for not presenting options they do not have. Triple negative! Brokers ONLY have to present the products that they offer. Since many brokers do not have FHA approval, I think this was a major liability that was removed. If borrowers think they may benefit from an FHA loan (ie lower credit, higher LTV), they should ASK the LO/broker about it. The broker would have a fiduciary duty to be truthful, even if they did not originate FHA. I think we will see a LOT of brokers scramble to get FHA approved. One more thing. LOs and brokers: Please, please, please, let your representives know that you exist. I don't care if you advocate for or against ANY of the proposed laws, just let them know that you care, and you vote. It's the same with voting, folks. If only a small number do vote, it's not really a democracy, is it? http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Amendments/House/6381%20AMH%20IFCP%20H5840.1.pdf Promise, it only takes a minute to read! Maybe 10 minutes to call or email your reps! The Fiduiciary bill was moderately marked up in the House, and looks like it’s headed for passage.

Thanks to Phoung Cat Le at the PI for keeping this in the news.

http://blog.seattlepi.nwsource.com/consumersmarts/archives/132983.asp

Main change is that brokers are not liable for not presenting options they do not have. Triple negative! Brokers ONLY have to present the products that they offer.

Since many brokers do not have FHA approval, I think this was a major liability that was removed.

If borrowers think they may benefit from an FHA loan (ie lower credit, higher LTV), they should ASK the LO/broker about it. The broker would have a fiduciary duty to be truthful, even if they did not originate FHA. I think we will see a LOT of brokers scramble to get FHA approved.

One more thing. LOs and brokers: Please, please, please, let your representives know that you exist. I don’t care if you advocate for or against ANY of the proposed laws, just let them know that you care, and you vote.

It’s the same with voting, folks. If only a small number do vote, it’s not really a democracy, is it?

http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Amendments/House/6381%20AMH%20IFCP%20H5840.1.pdf

Promise, it only takes a minute to read! Maybe 10 minutes to call or email your reps!

]]> By: Brady Fisher http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-271874 Brady Fisher Tue, 26 Feb 2008 23:00:03 +0000 http://raincityguide.com/2008/01/25/washington-state-legislative-alert-sb-6381-and-sb-6452/#comment-271874 I never thought of the possibility to use the change in legislature and LO practices as a way to differentiate ourselves from banks. That's a really great point! Also, I can see these bills from both points of view--a Loan Originator and someone seeking a home loan. I'm new to the industry, but also at the point in my life where I'm ready to purchase a home. From someone seeking a loan, I definitely would agree with the two bills. I would want everything disclosed and an increased amount of accountability for the LO, and I would like to know exactly what I would be paying in YSP, not just a range. Especially with a range like 1-3 percent. That's a huge difference in price! I can see the perspective of the loan originator, also, wanting to make as much money as possible, but I personally don't believe in trying to gouge people. So, overall I would have to say, "Bring on the changes." I never thought of the possibility to use the change in legislature and LO practices as a way to differentiate ourselves from banks. That’s a really great point!
Also, I can see these bills from both points of view–a Loan Originator and someone seeking a home loan. I’m new to the industry, but also at the point in my life where I’m ready to purchase a home. From someone seeking a loan, I definitely would agree with the two bills. I would want everything disclosed and an increased amount of accountability for the LO, and I would like to know exactly what I would be paying in YSP, not just a range. Especially with a range like 1-3 percent. That’s a huge difference in price!
I can see the perspective of the loan originator, also, wanting to make as much money as possible, but I personally don’t believe in trying to gouge people. So, overall I would have to say, “Bring on the changes.”

]]>