Comments on: Pricing Rates in a Volatile Market

By: Are Washington Consumers Safer Working with DFI Regulated Lenders? | Rain City Guide

Sat, 11 Oct 2008 18:13:56 +0000

[...] rules for originators who work for banks and those who work for state regulated institutions. On a comment at RCG, “DFI Examiner” confirmed that “LO’s with FDIC insured banks and credit unions need to register, but they don’t need [...]

By: Rhonda Porter

Rhonda Porter — Wed, 01 Oct 2008 23:48:54 +0000

Thanks Roger, I liked the confessional idea…because it was mine and because I do think it would help other LO’s. Many of us have the same or similar questions and may be afraid to ask. If it’s a “web site confessional” then it could also save DFI some time in answering the same LO questions over and over again.

By: Roger Ingalls

Roger Ingalls — Wed, 01 Oct 2008 23:25:50 +0000

Hey Rhonda:

I just signed up for national LO licensing (under the SAFE act). It was kind of a pain, but not too bad.

Funny, the initials are NMLS, sounded strangely familiar…

By: Roger Ingalls

Roger Ingalls — Wed, 01 Oct 2008 23:21:46 +0000

I wonder if DFI Ex could find an error in that file and send the whole shebang back to the borrower?

Whoo-hoo! Somebody would have a good day!

But, the sad reality is that it is OK w DFI to overcharge someone, as long as it is legal.

I thought the LO Confessional was a good idea. The lines would long….

By: Rhonda Porter

Rhonda Porter — Wed, 01 Oct 2008 22:52:05 +0000

Roger,
I wonder if the YSP was disclosed upfront on #42. I’d love to see the GFE to get the whole picture…although it could be quite tragic. I have consumers sending me their GFE’s for review from across the county (and some local) and it’s pretty amazing…but I’ve never seen anything like that.

I remember doing a signing (in my escrow days) where the LO attended to help sign because they spoke a different language…but I could read the HUD and it was probably the most YSP I’ve ever seen (DFI Examiner has it beat based on his example). It was frustrating because (1) I was in escrow and had to be neutral and (2) the LO was grinning ear to ear and I’m sure his borrowers had no idea. It was predatory.

By: Rhonda Porter

Rhonda Porter — Wed, 01 Oct 2008 22:39:39 +0000

DFI Examiner, I hope you don’t judge all loan originators by the bad apples (and without seeing the entire GFE, it’s hard to say although, I can’t imagine ever making that much on a loan regardless of how large the loan amount is). Were they paying closing cost with that YSP?

Brokers and LO’s do not make “salaries”, they’re paid commission and YOU could be one too if you pass the exams. It’s a choice and it can be feast or famine.

When I was in the escrow/title biz, I disliked LO’s in general because of what I thought I was seeing (I’ll bet I was 70%-80% correct in my judgment).

My fear is that this market will weed out “bad actors” (that part is a wish and not a fear) and that new legislation will make it so challenging for the few LO’s remaining that most leave the industry in order to save their sanity.

Your prediction may come true and we may very well end up with just two or three big banks controlling the mortgage market with no competition to help out consumers. I can’t see that as a plus.

By: Roger Ingalls

Roger Ingalls — Wed, 01 Oct 2008 22:33:46 +0000

DFI:

I don’t know whether that’s tragic or funny #42!

I don’t think that is typical, even for a loan of that size. I’ve done a few loans that big and made nothing even close to that much.

We don’t need to go to DFI for sympathy, but it is nice to know DFI is finally helping the good brokers rid the business of those who are clearly taking an unfair advantage of borrowers.

I don’t think that was happening at the rate we are seeing now.

Be sure to not throw the baby out with the bathwater.

Let’s hope it’s not too late.

By: DFI Examiner

DFI Examiner — Wed, 01 Oct 2008 22:21:35 +0000

Rhonda-

I saw a $21,000 YSP the other day on a $865K loan. It’s a little hard to sympathize with a few extra thousand in yearly expenses…especially when looking at commision and salaries of brokers and LOs over the last couple of years.

That’s a good idea, but a couple people in our IT department left and we can’t get more people until the state hiring freeze is over. We are extremely short-staffed in IT and that project would be very far down the list.

In the mean time, ask your anonymous questions by pressing star 67 before you dial the Mortgage Broker Financial Examiner Toby Snider or the Consumer Loan Supervisor Rick St.Onge.
http://www.dfi.wa.gov/about/staffcontacts.htm#CS

By: Rhonda Porter

Rhonda Porter — Wed, 01 Oct 2008 21:44:14 +0000

DFI Examiner, I have an idea I’d like to bounce off you… I think it would be great if DFI had something like a LO Confessional where questions could be asked anonymously without recourse from an overzealous examiner …the Q&A could be posted on DFI’s site to help other LO’s w/the same questions. Such as “where do I put this point” or “do I have to complete the loan ap disclosure form when…” etc.

Also…I forgot another fee our company has paid thanks to having to become CLA and no longer being MBPA (I’m not sure what it’s called exactly): approx. $4800 for having our branches approved under CLA.

By: Rhonda Porter

Rhonda Porter — Wed, 01 Oct 2008 21:29:42 +0000

DFI Examiner,
For the company I work for, the bond (CLA) cost about $4000 more than previously as MBPA. In addition, we have a sales tax (more like an excise tax) which will cost on average $60 PER LOAN.

CLA being less restrictive is not a good thing. I’d rather have us all (including mortgage bankers) have the same guidelines and qualifications.

The consumer often times does not know what type of originator they’re working with and who regulates them if they have an issue.