WHY YOU PAY TOO MUCH FOR A LOAN TODAY. It is almost a certainty that your lender has used one of the following techniques to scam extra money from you! Don't feel to bad, they do it to almost everyone. But now you can do something about it. I am blowing the lid off the Banking and brokerage industry. Exposing to you how the big banks and small brokerages alike have been ripping you off for years. Not only will I expose them, but, I will empower you to beat them at there own game. The fact is most Big lenders have it in their business plan to rip you off. Google your lenders name and the word "fraud" and you will see what I mean. Whether it's the legal APR deception in conjunction with an Affiliated Partnership arrangement. Or the Rigged Underwriting software scam that the biggest banks have used that omits your assets from their approval software and therefor assigns you a higher risk grade and higher interest rate. Borrowers who think they can battle it out with these lenders by "shopping around" like the guy in the Lending tree commercial who smugly says to his banker "don't worry. Now you can compete for my business too." Are very much mistaken. Think about it, that "shrewd" shopper eventually must choose some one and when they do, they chose solely on lowest initial quote. The lender knows the borrower has no loyalty and has no problem using one of the tactics listed below to insure he gets the commission he thinks he deserves. You're thinking, that's a pretty ugly picture your painting Brian. Yes it is. It's ugly if you are an honest borrower and just as ugly if you are an honest loan officer working with clients who are certain you will rip them off. My solution eliminates all the games and makes the loan process empowering and pleasant for the borrower. Listen to what people who have used our system say. NOTE: If you are sure your lender is not doing one of the following scams you are very fortunate to have found an honest one and I suggest you stay with them because they deserve your loyal business. Also If you are a lender and find this concept fits your way of doing business, please feel free to use the concept, verbiage and Broker Fee Agreement . I have purposefully left this unprotected. Lender Scams: APR Games: (Definition) This is the biggest scam today because it is legal. Just about everyone who advertises on T.V., radio and other mass markets and quotes rates and APR uses this form of deception. And just about every "smart" rate shopper has been told by the "experts" to compare APRs from different lenders to determine the best deal. The fact is, APR as it exists today is worthless as a tool to determine the best loan for the following reasons: 1. Not all fees charged to you in the loan process must be included in the APR disclosure. For example, nonrefundable application fees, title insurance premiums, property appraisals and document preparation fees are not included. Lenders will purposefully Increase the fees that are not included in the calculation and lower the fees that are to manipulate the APR. For a more detailed explanation with a case study of how APR is manipulated read the first 2 pages of this report written by Gibran Nichols President of CMPS Institute (Certified Mortgage Planning Specialists) 2. APR is calculated over the entire term of the loan. So if you have a 30 year mortgage but only plan to keep the loan for 5 years your APR doesn't tell the true cost of the loan. In this case the APR is only accurate if you keep the loan for the full term. 3. Also lender rates can change as much as three times a day or more. So if you get an APR quote from a lender at 10:30 am and one from another lender at 2:00 pm. Those quotes may not be comparable because the market likely moved. Too close to cancel: A lender waits until you are within the time period where it is to late to switch to another lender and then adds fees or requires that you switch to a different more expensive loan for dubious reasons. In some cases these changes are warranted but you will never know because you are kept in the dark. Bait and Remember: Some mortgage brokers and lenders will fail to mention certain fees or provisions associated with the loan until the borrower is in too deep to bail out. Adding a prepayment penalty for example can ad an additional rebate point to the loan that may go into the originators pocket Instead of the borrowers where it belongs. Play the Market: Usually there is a lag between the time a borrower submits an application and the time when the loan terms are locked. The loan originator will always explain to the borrower that the terms quoted at time of application are subject to change with the market. If market rates subsequently rise, the borrower will indeed see the rate on his loan rise. If market rates decline, on the other hand, some loan providers will leave the rate on the loan unchanged unless the borrower challenges it. Rig the Market Rate Against Floaters: Borrowers prepared to take the risk may elect to "float" the rate and points during the period until the loan closes, betting that market rates will not rise. The "market rate", however, is what the loan originator says it is because they don't typically disclose their wholesale rate sheet each time they quote a rate. Some of them up the price as the closing date approaches. Lenders do this as well as brokers. Market Niche Misclassification: Borrowers are sometimes classified as belonging to a higher risk category than is in fact the case, which increases the markup. Banks have used rigged underwriting software to pull off this scam. Rigged Underwriting software: How this works is bank management alters the input fields on their underwriting software so the loan officer has no place to input your savings and investments information making you look less qualified to the computer thus qualifying you for a higher priced loan. Some of the biggest banks in the nation have been caught using this trick. Charge the Lock Price But Don't Lock: Some mortgage brokers will tell the borrower they locked the rate and points, when they really haven't. If interest rates decline the broker pockets the lock premium, and if they rise, the broker tells you some excuse like "the review appraisal came in low and we must move to a higher rate program and re-lock the loan." Low ball: Quote you a rate at the beginning of the loan that they can't possibly deliver to secure your business in the hope that market rates might drop enough to make the quoted rate available. The short lock quote. Most lenders quote you 12 day lock when the loan process may take 30 to 45 days. This is a worthless quote. Bait and switch: Rates change every few hours; quote with small mark up at the beginning of the loan process and larger mark up when you are ready to lock , then blame it on the market. Banks do this all the time because they are not required to disclose to you how much they are being paid in rebate. Some originators will just raise your points at the last minute and hope you don't notice. Affiliated business arrangements: Lenders may have an ownership interest in other companies involved in the transaction and receive payment for steering you to them. Some of these affiliate companies include Escrow, Title, Credit, Appraisal, credit repair and notary sign up. This is bad for the borrower because the lender is not shopping the market for the best company with the best price for you. Also, this helps the APR scam because most third party fees are not included in the APR calculation so lenders raise this fee and lower an APR fee. How We Do It Better:
Give us a try today. Contact me to discuss your situation or complete our on line loan application and experience what it's like to be truly empowered. Best regards, Brian Lawrence Brian Lawrence CMPS Mortgage Broker for 19 years Brian@7608023812.com 760 802 3812 |
Mortgage Tricks Exposed
Learn To Be An Empowered Borrower
by Brian Lawrence
Learn To Be An Empowered Borrower
by Brian Lawrence
...The way you work takes all the stress out of the loan process. I would never do it any other way. M. Mc Caline Escondido CA Your transparent process made all the difference in the world. This was our 5th mortgage transaction and now I know how the other lenders riped us off. Never again! Thanks Brian! C. Kriel Riverside CA Thanks for everything. Linda loves our new home! Brian & Linda F San Diego |
