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Name: Rhonda Porter
Nickname: Rhonda Porter
Member since: 2006-12-28 21:54:14
Website URL: http://www.mortgageporter.com
About me: Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter is a Licensed Loan Originator 510-LO-32047 (MLO-121324). Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). Inman News named Rhonda one of the Top 50 Online Influencers of 2009. She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker http://www.twitter.com/mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

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The Financing Contingency: Does it disfavor mortgage brokers?

February 8th, 2010 at 1:58 pm

No worries, Craig– I know you had good intentions :) it’s important for consumers and all parties involved with a real estate transaction to understand the difference between a correspondent lender (where we process, underwrite, draw loan docs and actually fund the loan) vs a mortgage broker (originate the loan). In years past, there haven’t been that many correspondent lenders because of the great net worth it requires and the liability associated…it’s a much larger commitment on many levels than a mortgage broker. This is part of the reason why we’re now seeing many mortgage broker’s trying to join correspondent lenders.

Predatory Short Sale Negotiators

February 7th, 2010 at 7:45 am

Jillayne,
This reminds me of your loan mod article as well…very sad that predatory actions can take place when people are most vulnerable.

I recently closed a purchase where there was a first/second mortgage to contend with on the short sale. The second mortgage demanded $4000 from the buyer to proceed once everything was approved… the second lien holder/mortgage (both banks/lien holders are tarp banks by the way) didn’t care where the $4k came from (it could have been the agent’s commission)…the buyer wound up paying for it and everything was disclosed on the HUD–as is SHOULD BE.

The Financing Contingency: Does it disfavor mortgage brokers?

February 6th, 2010 at 7:42 am

“In its current iteration, the financing contingency (NWMLS Form 22A) specifically defines “lender” as “the party funding the loan.” Thus, by its very terms, the term lender does not include a mortgage broker (such as our very own Rhonda Porter), since a mortgage broker simply brokers the loan (i.e., matches up a lender with a borrower) and does not actually lend any money.”

Craig has classified me as a broker and has essesntially referenced in his post that I (as a broker) may have an issue with the addendum. I have brokered 1 loan in the last 3 years.

Craig, Mortgage Master is a correspondent lender. We fund the loans we originate from our own credit line. So I don’t fit your first paragraph. We do lend money. We do make the underwriting decisions at our office. Loans are sold after closing…sometimes a month or longer.

Also, for the record Jillayne, I have maintained my license from DFI that we originally obtained when this law first came out for mortgage brokers. DFI later came out with the CLA. I did not retire my license at that time, although I could of. I have continued my clock hour/continuing education and have paid my dues to the State of Washington.

I am not saying that I need to be excused from MBPA. I want Craig’s post to be accurate and I don’t feel his reference to me is. I was very disappointed when DFI came up with the CLA classification and forced many of us who were abiding by the law into that category…it’s all about money for the state and going after some big lenders (I believe Countrywide was one of them at the time this happened).

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

February 6th, 2010 at 7:24 am

Jillayne,
I’m not “deflecting the topic” — your comment was a discriminating attack on WAMB members and left out every other type of mortgage originator. When I deal with consumers who need help or advice from their transactions–the LO’s they’re dealing with have been 50/50 bank or broker/correspondent. Bank LO’s a re harder for consumers to file compliants with than those who are regulated by DFI on the State level.

Ameriqwest and Household finance are not true correspendent lenders–they are true consumer loan companies (the category DFI decided to put WA State correspondent lenders into). A company like Mortgage Master is not the same as these, Jillayne, and you know it.

Of course banks will jump on this, Bank of America all ready has and is paying their LO’s based on volume produced (let’s churn those borrowers–move ‘em fast and get on to the next…) instead of the individual transaction and the merits of that transaction. And you hit the nail on the head, this will reduce the quality of mortgage originator.

Consumers can have an entry level “mortgage teller” help them finance the largest investment of their lifetimes.

And when banks have sufficated most of their competition (brokers), I’m sure they’ll keep mortgage rates low because that’s what’s good for the consumer (yeah, sure they will).

The mortgage industry did get bad during the subprime years. Everyone and their brother was becoming a mortgage originator–guess what, they worked at banks too…if they were a producer, the bank turned their head the other way.

When I was in title/escrow BEFORE the subprime years (I entered the mortgage business in 2000); there were few mortgage originators that I had respect for…very few. I would say most of the ones I know now are of a higher quality and do view this profession as their career. Are they WAMB members? Some yes and some no–it has nothing to do with WAMB.

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

February 5th, 2010 at 9:56 pm

Jillayne, I think it’s sad that you reference WAMP and NAMB (it’s not wambie and nambie) and exclude mortgage originators who are not members. Must you be a WAMP/NAMB member to be a slimy LO? I don’t think so… as I have always said (and always will) it’s not the institution, it’s the individual.

You will find slimeball LO’s at banks too.. your comment excludes them and I’m not sure why. You think there were no bad LO’s at Wachoiva? World Savings, Countrywide, WaMu, Chase or Wells or ??? None of this mess would have happened without the banks and their products.

Give me a break!

The Financing Contingency: Does it disfavor mortgage brokers?

February 5th, 2010 at 9:18 pm

Jillayne, many of us who work for a CLA were under the MBPA when DFI decided to create the CLA designation. DFI was going after a few with the CLA designation/requirements and created a real pain for those of us who were abiding by MBPA.

The Financing Contingency: Does it disfavor mortgage brokers?

February 5th, 2010 at 9:13 pm

Craig, actually, I’m not a mortgage broker, I work for a correspondent lender (aka CLA in WA State) we fund probably 90% or more of our loans from our credit line… I’ve brokered one loan in the last 3 years. :) But thanks for the mention–but can you correct it since I DON’T WORK FOR A BROKER.

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

February 5th, 2010 at 7:37 pm

Maybe I wasn’t clear. It would be as if a LO has to file their origination fee for a set amount and only make that amount for every loan regardless of loan amount or difficulty.

Some transactions are a lot easier than others and if it’s a loan where they’re putting a signifcant amount of down payment with excellent credit or they’re returning clients and I have all their info, I tend to price that scenario accordingly. I’ve had the freedom, much like real estate agents, to decide my compensation–and the consumer has had that too…they decide to work with me or not. It is market driven.

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

February 5th, 2010 at 6:48 pm

Jillayne, according to the call, a LO will not be able to compete with another LO. We cannot adjust our compensation up or down based on the amount of work.

Do you have flexibility with how your paid or does the goverment control your compensation?

The Federal Reserve's proposed changes to Regulation Z (Truth in Lending)

February 5th, 2010 at 4:57 pm

I’m listening to a recent conference call on MMG right now regarding Loan Originator compensation…it’s really concerning. Proposed changes to RegZ will stop LO’s from being paid based on loan amount or any terms of the mortgage. According to the call, LO’s will have to state they will only make $X on a transaction and may not modify that amount up or down. It’s amazing.

If you have access to MMG, you want to listen to this call.

Loan Originators: Stop Your Crying...Let's Love the Good Faith Estimate

February 4th, 2010 at 4:41 pm

I don’t like being angry and Valentines Day is around the corner. ;)

Loan Originators: Stop Your Crying...Let's Love the Good Faith Estimate

February 4th, 2010 at 4:40 pm

I’m not happy with the GFE, Russ, either. If I could have designed one, it would have resembled a HUD so that there would be some sort of congruency for the consumer…but we don’t get to do that. I’m just doing the best I can to “embrace it”.

Loan Originators: Stop Your Crying...Let's Love the Good Faith Estimate

February 4th, 2010 at 4:31 pm

I wouldn’t say that I’m “denying the truth”… I’m probably more like someone in rehab… I’m accepting the things that I cannot change. We have to make the best of this or be bitter and angry all day long…it’s not going to solve anything…or we can be happy that someone is actually considering to do business with us and is giving us a chance.

Loan Originators: Stop Your Crying...Let's Love the Good Faith Estimate

February 4th, 2010 at 12:34 pm

Thanks, Chik! I think many of us have been experiencing the stages of grief, which all kidding aside, is a natural process: denial, anger, depression and acceptance. :)

Home Buyers: Please Be Aware of the Owners Policy on the GFE

February 3rd, 2010 at 8:15 am

Bottom line, everyone needs to check with their compliance department… and double check w/HUD’s info to make sure it makes sense…I’ve heard of some big mortgage companies not believing the owners title policy… ya need to cya! :)

Home Buyers: Please Be Aware of the Owners Policy on the GFE

February 3rd, 2010 at 7:57 am

Wendy, I just received a different answer from a HUD rep who stated that if it’s not a fee typically paid for by the seller (excise/transfer tax) it does not have to be on the 2010 GFE UNLESS we have a copy of the purchase and sales agreement stating the tax will be paid for by the buyer.

HUD may need to do an updated FAQ….it’s been a few weeks since they’ve reissued one so I think they’re due ;)

Home Buyers: Please Be Aware of the Owners Policy on the GFE

February 3rd, 2010 at 7:55 am

I let the borrower know that this is a seller paid cost (in our area) and this document requires us to disclose it even though they do not pay for it. I also point out on the loan application (page 3) where the owners policy is shown as a credit.

Home Buyers: Please Be Aware of the Owners Policy on the GFE

February 3rd, 2010 at 7:53 am

Richard, I agree HUD has made a national form, but they do allow us not to factor in cost the seller traditionally pays with EXCEPTION to the owners title policy. Not sure why they excepted that.

FHA Condo Approval Process - MAJOR Guidline Changes

February 1st, 2010 at 2:28 pm

Jim, it’s my understanding that today is the last day to have an FHA case # issued prior to this Mortgagee Letter going into effect (it was extended from when this post was originlly written).

Major Bank No Longer Allowing Mortgages with Zero Points/Zero Costs

January 28th, 2010 at 10:42 pm

I’m pretty sure that ysp goes on 802 on page 3 of the new hud…

For a mortgage broker originating a loan in its own name, the amount
shown on Line 802 will be the difference between the initial loan amount
and the total payment to the mortgage broker from the lender. The total
payment to the mortgage broker will be the sum of the price paid for the
loan by the lender and any other payments to the mortgage broker from
the lender, including any payments based on the loan amount or loan
terms, and any flat rate payments. For a mortgage broker originating a
loan in another entity’s name, the amount shown on Line 802 will be the
sum of all payments to the mortgage broker from the lender, including
any payments based on the loan amount or loan terms, and any flat rate
payments.
In either case, when the amount paid to the mortgage broker exceeds
the initial loan amount, there is a credit to the borrower and it is
entered as a negative amount. When the initial loan amount exceeds the
amount paid to the mortgage broker, there is a charge to the borrower
and it is entered as a positive amount. For a lender, the amount shown
on Line 802 may include any credit or charge (points) to the Borrower.

Major Bank No Longer Allowing Mortgages with Zero Points/Zero Costs

January 28th, 2010 at 10:38 pm

Jillayne, I’ve checked the fbi link you’ve sent me and I cannot find 100s of mortgage brokers who are implicated for fraud. Do you have a better list?

Part of the issue to is how difficult it is to prosicute someone who works for a bank… here’s a post I wrote from RCG a few years ago: http://raincityguide.com/2008/10/11/are-washington-consumers-safer-working-with-dfi-regulated-lenders/

It’s a lot easier to go after a slimy mortgage broker and get results than a slimy mortgage banker.

Seattle Condo Market - Lender says "more insurance mandatory"

January 28th, 2010 at 5:57 pm

Are insurance companies still using the clues report? I remember when that first came out, it was quite a controversial topic…and this is the first time I’ve seen it mentioned in a long time.

Major Bank No Longer Allowing Mortgages with Zero Points/Zero Costs

January 28th, 2010 at 5:55 pm

David, re: I’m more interested in agent contribution of commission, or work orders paid at closing, do you mean where this would show on a good faith estimate or HUD? I’m not sure what you’re asking.

Major Bank No Longer Allowing Mortgages with Zero Points/Zero Costs

January 28th, 2010 at 12:36 pm

Where the 2010 estimte is a benefit is that it will show costs to rate better (assuming it’s filled out correctly).

Presently one type of institution over the other doesn’t seem to offer better pricing. It boils down to the originators who have had the flexibity of deciding what they want to charge for their service and the loan product, very similar to how real estate agents are paid.

Consumers, in years past and I hope the future, have had the freedom to let their mortgage professional know how they want their mortgage priced:
~no points (no origination fee/no discount points)
~a rate based on paying 1 point or addtional discount points
~a rate based on only paying a specific amount of lender costs.

I’ve been asked many different scenarios over the past 10 years. I’ve had to freedom to say, yes I can lock that rate at that cost or nope…I can’t (rate not available to not enough revenue for me to justify doing the loan)…or even better, yes I can lock that and better the rate or lower the costs.

I see all of this being in significant jeopardy with how our Congress is on a rampage.

Mortgage Brokers did not cause our current crisis. They’re a weak lobbying group formed of small businesses that are in jeopardy as well. Mortgage banks sold the products to the brokers, created the guidelines, underwrote the transactions and then bought them from broker. The Broker was only a sales person.

So now Congress is after eliminating YSP EVEN THOUGH IT’S CREDITED TO THE BORROWER with the implementation of the 2010 GFE. They’re wasting tax payer dollars on a moot point…BIG SURPRISE!

They know nothing about the mortgage industry and are also to blame for our crisis with how much they pushed banks to offer housing for more people who could not afford or qualify based on programs that were available at that time.

I shudder to think what it’s going to be like for the consumer if all that is left for them are three or four big ol’ TARP banks for mortgages… I can tell that rates will not be competitive AND that service will not be great. Once banks have suffocated mortgage brokers, there will be little to no competition…and that’s always bad for the consumer.