Comments on: A Mortgage Broker is not a Lender

By: Rhonda Porter

Rhonda Porter — Sat, 17 May 2008 05:14:06 +0000

Jillayne, where is the gift? I’m not seeing it…perhaps I’m too close to the wrapping… a grace period for something that was not given much time for lenders to deal with is not my idea of a “gift”.

By: Jillayne Schlicke

Jillayne Schlicke — Sat, 17 May 2008 03:40:47 +0000

Well, we’ve been waiting for the definition of “lender” and what it means to “make a loan.” Instead, they went right to the heart of the matter and drew a line as to which business models fall under the Mortgage Broker Practices Act and which business models fall under the Consumer Loan Act.

DFI has given the industry a little gift:

“Non-delegated Correspondent – You close loans in your name with funds provided by a lender through a line of credit. The lender provides the underwriting criteria the borrower must meet and makes the final underwriting decision.”

Non-del correspondents would consider this a victory. They can stay licensed under the MBPA.

DFI is going to grant CL licensees a grace period for obtaining their bond, fee adjustments, and they also answered our questions regarding private money lending.

By: Rhonda Porter

Rhonda Porter — Sat, 17 May 2008 00:39:15 +0000

Here’s DFI’s update: http://dfi.wa.gov/cs/sb_6471_faq.htm

I don’t see any new info offering clarity from what has been offered from DFI to date. We waited for this?

By: Rhonda Porter

Rhonda Porter — Fri, 16 May 2008 23:56:47 +0000

I’ve been checking DFI’s site all day today and I’m not finding any new info offering clarity. I guess they day is not over…we have 5 more minutes (unless they work past 5).

By: Jillayne Schlicke

Jillayne Schlicke — Wed, 14 May 2008 18:38:42 +0000

Hi Brian,

What kind of fees do brokers and correspondent lenders pay in California?

By: Brian Brady

Brian Brady — Wed, 14 May 2008 07:56:20 +0000

“those predators seem to be our elected officials …”

Oh, then it’s just like California (my state)

By: Team Reba Real Estate » How do you go about choosing a lender for your home purchase?

Mon, 12 May 2008 16:47:53 +0000

[...] brokers. Friends, colleagues and your agent can help you get referrals and references. Be sure to check if your state requires any kind of licensing for mortgage brokers and ask if the loan officer is licensed and have them show you the information – and check it. [...]

By: Leanne Finlay

Leanne Finlay — Mon, 12 May 2008 01:36:51 +0000

those predators seem to be our elected officials …

By: Brian Brady

Brian Brady — Sun, 11 May 2008 02:56:52 +0000

“$20,000 to $60,000 per year in fees that the correspondent lender will have to pay to the state of Washington each year.”

OMG, that’s robbery without a gun. How are the good people of your state letting these predators get away with this?

By: Jillayne Schlicke

Jillayne Schlicke — Sat, 10 May 2008 18:38:59 +0000

Hi Rhonda,

For the compare and contrast math, please remember to add in the mortgage BROKER revenue that the state collects on the broker’s license.

Also, I’m not following your math on the correspondent example. Can you lay it out for us in greater detail?

Thanks.