About Brokers

Mortgage Banks and Brokers everyday are closing home buyers and refinancers at a higher rate than they deserve! This artificial upping of the rate and the revenue created by doing so are hidden from the customer. This hidden ripping-off of the mortgage consumer is called Yield Spread Premium overchaging if the loan is originated by a broker and Service Release Premium overcharging if the loan is originated by a mortgage bank...you know, Countrywide, Wells Fargo, or Bank of America.

Business Brokerage Prof. Howell E. Jackson, Associate Dean for Research and Special Programs Harvard Law School, testified before the Senate Banking Committee on January 8, 2002, and testified to the following:

Mortgage companies are often owned by a bank or an estate agency. The real issue is a serious lack of independence and conflict of interest. Clients have no guarantee that their mortgage application will be channeled to the lender that offers the best interest rate instead of to the one offering the broker the highest commission. These fees will be subsidized by the banks customers in the form of higher charges and higher interest rates.

Forex Broker ...the vast majority of borrowers pay yield spread premiums - on the order of 85 to 90 percent of all transactions. Moreover, the average amount of yield spread premiums is quite substantial, on the order of $1,850 per transaction, making these payments the most important single source of revenue for mortgage brokers. In other words, contrary to the Department's assumptions, yield spread premiums are not an optional form of financing made available to a limited number of borrowers with special needs. Rather these payments constitute by far the largest source of compensation for mortgage brokers and are imposed on almost all borrowers who obtain mortgages or refinancings through this segment of the industry.

You ’l also need to decide whether you want to get advice on choosing a mortgage. Mortgage brokers can scour the market on your behalf and recommend you the best deal for your situation. Using a mortgage broker can help ensure that you get a mortgage that is suitable for your own needs, and can often save you money. Sometimes brokers have access to special deals that are not available direct from a mortgage lender.

Online Brokerage If Professor Jackson testified on Service Release Premium that mortgage banks receive, I'm sure his statments would echo the same as above.

Interest Rate The annual rate of interest on the loan, expressed as a percentage of 100. Joint Liability Liability shared among two or more people, each of whom is liable for the full debt. Latent Defect This is a fault or flaw that is not immediately detectable or is hidden from view on inspection of the property Lender The bank, mortgage company, or mortgage broker offering the loan.

Real Estate Broker The Governments own numbers, which are grossly understated I might add, say this Yield Spread and Service Release premium overcharging costs American home owners $16,000,000,000 a year...each any every year!

Since I may be working for a company, references to "we" or "us" refer to me and any company for which I am working. Duties and Nature of Relationship iHomeowners is an internet marketing company and does not accept applications from consumers. Rather, iHomeowners matches consumers with mortgage brokers, lenders, or bankers.?Consumers contact iHomeowners, provide certain information, and a loan request is forwarded to a participating mortgage brokers, lenders, or bankers.?In connection with your request, we are acting as an independent contractor and not as your agent. We will enter into separate independent contractor agreements with various mortgage broker, lender, or banker. While we will seek to assist you in meeting your financial needs, we do not distribute the products of all mortgage broker, lender, or banker or investors in the market and cannot guarantee the lowest or best terms available in the market.

Agency Brokerage Spark To beat these guys at their own game, you simply must learn how they price out a loan including this rip-off! Reading this article is a good start, however, the complete guide to eleminated Yield Spread and Service Release Premium overcharging is outlined in my ebook, Mortgage Secrets Exposed!. See the resource box at the bottom for more information.

By Robert Irwin Author of THE ARMCHAIR REAL ESTATE INVESTOR, to be published in early 2008 Foreclosure itself is a process whereby a lender takes ownership of a property on which it has previously given a mortgage. íypically a buyer wants to purchase a home, but doesn't have all cash. ìo, that buyer finds a lender (such as a bank, insurance company, and so on), typically using a mortgage broker, and obtains a mortgage as part of the purchase price of a home.

Business Broker Understanding how to price out a loan by reading Mortgage Bank Rate Sheets is really quite easy though it may seem intimidating at first. It will all become clear as you read this narrative on how we do it at our company, Integrity First Mortgage, Inc. in Denver. So, settle in and take the 10 minutes to read this article and understand this practice.

Brokerage Account Doing so will save you 10s of $1,000 over your lifetime owning and financing houses. A small price to pay indeed!

Stock Broker Here we go!

Brokerage Online Stock Trading All of mortgage lenders we work with at Integrity First Mortgage, Inc., furnish us with rate sheets on a daily basis via the internet or by fax. We follow the rates several times a day in order to properly quote the best available rate and term to our customers. When reviewing the rate sheet, we also determine which rate will NOT create a rebate from the lender known as a Yield Spread Premium. We believe upping your rate to make additional revenue over the 1% origination fee is deceptive, dishonest, and a bad business practice.believe me, other companies do not hold that opinion.

Broker Justin Ticket
Let's use the rate sheet data below to demonstrate how we determine the rate that we quote to our borrowers. We will also show you using the corresponding HSH Survey data how other Brokers and Banks are making enormous undisclosed profits in the form of Yield Spread Premium.

Real Estate Brokerage Lender Rate Sheet (see below ) data was collected from a real Wholesale Lender's (Ampro Mortgage ) Rate sheet dated 03/10/2006. You can confirm the HSH data is real as well by visiting HSH.com.

Commodity Broker 30 Year Fixed
Rate 15 Day 30 Day 45 Day
5.750% 1.350 1.475 1.600
5.875% 0.611 0.736 0.861
6.000% 0.039 0.164 1.826
6.125% (0.392) (0.267) (0.142)
6.250% (0.773) (0.648) (0.523)
6.375% (1.180) (1.055) (0.930)
6.500% (1.623) (1.498) (1.373)
6.625% (2.029) (1.904) (1.773)
6..750% (2.280) (2.155) (2.030)

Brokerage House HSH ASSOCIATES The Nations Largest Publisher of Mortgage
The Nations Mortgage Market: Average Rates for Residential Mortgages Week ending March 10, 2006
Owner-occupied 1-4 Family and Condos: Previously Occupied Homes Source: HSH Associates

Real Estate Broker Exam National Ave. SURVEY CONVENTIONAL MORTGAGES
30 Yr
6.51%

Brokerage Services In our example, we will quote our borrower a 30 year rate that carries a lock period of 30 days. If we are seeking to earn only a 1.0% origination fee and NO yield spread premium (back end fee), we will quote the rate of 6.000%. According to the rate sheet, 6.000% actually costs .164% Discount payable to the Lender not Integrity First Mortgage. On this rate sheet, 6.000% is as close to par pricing as we can get. As you can see the next higher rate, 6.125% creates .267% of Yield Spread Premium and that's not good. (YSP is shown in (.267) parenthesis). So with this example, look at the costs for a loan at 6.00% with us.

Broker Live Ticket Rate: 6.000%, $200,000 Mortgage Loan x 1.0% Broker Origination Fee + 0.164 Discount = $200,000 x 1.164% = $2,328.00

Online Brokerage Firm
Now we will show how everyone else does it! First realize that banks and brokers don't usually quote you the rate you'll close with.they bait-and-switch with low-ball rates and artificially lowered closing costs to get you to apply with them. Then on closing day, the rates and costs are higher than you expected, but they claim their Good Faith Estimate was in deed just that.an estimate. You've got the moving van idling in parking lot, so you sign. They count on the fact you are painted into a corner and have but one option.sign.

Security Broker Dealer How do I know this to be true? One reason is 15 years of asking folks, "How did your last loan go.any surprises at closing?" About 85% of those folks answer, Yes to that one. Second, every closing exit poll conducted by Fannie Mae and Freddie Mac show the same results. But the most compelling reason is up above on HSH Survey data. It shows for the week ending Mar 10, 2006, the National Average interest rate on CLOSED Loans was 6.51%!

Coldwell Banker Residential (NOTE: HSH has an agreement with their 2000+ survey participants to give them closed loan rates, not lobby rates or other teaser rates.)

Freight Broker I guarantee you that all those folks did not sign a Good Faith Estimate at application showing them 6.5% because that is not the rate advertised all over the news, radio ads, and the internet over the prior 4-6 weeks when these folks were applying. The loan officer for the bank or broker could not very easily advertise 6.00% and have them sign at 6.5%...everyone would balk at that. So they show them 6.00%, get them to sign, and then sometime during processing or just at the closing, the borrower is informed his rate had to be adjusted upward. The loan officer will get very creative on explaining all the reasons why this had to happen, but suffice it to say, this was the plan from the beginning. So with this rate sheet data, let us look at what they made.

Freight Brokerage Rate: 6.500%, $200,000 Mortgage Loan x 1.0% Broker Origination Fee +1.498 YSP = $200,000 x 2.498% = $4,996.00

Broker Lie Ticket The banks and brokers simply cannot forgo the Yield Spread Premium overcharging because at the very least it DOUBLES their income for each loan!

4th Boost Brokerage By Now with this tutorial and our daily rate sheet updates you can protect yourself from the most egregious consumer rip-off in history.

Florida Mortgage Broker Good Luck!

Insurance Brokerage

Online Broker Rob K. Blake, author of the book Mortgage Secrets Exposed! and host of The Mortgage Insiders Show, has been teaching folks for the last 15 years all the tips and tactics to save $1,000s when shopping for a mortgage. For more tips, Visit his website at http://www.themortgageinsider.net. Download my free ebook, For Sale By Owner Secrets! at my FSBO site http://www.financethishouse.net.

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