LOL I wonder how that's working out for him now. All the mortgage brokerages near me are closed down.

People will rip off people who don't pay attention? Shocking.

This whole business reminds me of nothing more than a scam. You got an agent, broker, lender, et al, and you can't trust any of them. From the looks of it, you have to be a lawyer just to get through the mess that's buying a home. :(

Every one of these confessions you post is Bullshit. Of course if I like someone Im gonna lower the fees if I have the room. The less annoying customer (or the one that made me work the least) pay less. So do the more knowledgeable ones.

Most of the fees arent bullshit, btw. Dont pay application fees, but 90% of the minor fees on your good faith are mandatory.

Brokers can charge Yield Spread, Brokers/Lender Fees or Points. Those are the only fees that they have true control over, and Lender fees are often mandated by corporate.

Read any of my old mortgage post for the real story of how this stuff works.

On the whole all of the people I've dealt with who bill themselves as "mortgage brokers" were shadier than people who billed themselves as "lenders". The lenders were quick with a GFE and I had a HUD-1 in hand well before closing. The brokers were more "just trust me on this".

All this and more in this month's issue of DUH Magazine.

Look for a book by Ron Cahallan, "What mortgage brokers don't want you to know." It saved me thousands on my last mortgage.

And don't EVER pay YSP.

SUPER: Isn't it amusing that hookers and mortgage brokers both offer a "GFE?" LOL

Every mortgage broker I talked to when I bought my house a couple of years ago was a total scumbag. Every. Single. One. I can recall one particularly snarky broker insisting that unless I was planning to live in my house for at least 20 years, an interest-only loan would be my best option.

In the end I shopped directly with and between banks, both local and national, and ended up with a deal that beat every lousy offer that the brokers ever made.

My question to all would be, why do these assclowns even exist? These are utterly larcenous middlemen that add zero value to the entire process.

It's also important to not go through life being a dick.

@TinkishDelight: Although many, many people try their best.

@savvy999: You realize that brokers and lenders are the EXACT SAME POOL OF PEOPLE? People switch back and forth all the time. Go fuck yourself before calling decent people names.

@Me: Yield Spread makes sense IF you are looking to pay off the loan, sell or refinance within the next 10 years. Its a moving of fees from up front to the back end of a loan (in rate).

@SuperJdynamite: Brokers have to disclose all fees, including Yield Spread (money paid for a higher rate). Lenders do not.

this is just like enron....no reliable accountants or honesty in america and where's the media in all this? they don't have any insiders who wouldve seen this coming? or arent they getting paid by the ads that these companies can only afford by ripping most people off...

WANTING to do something like that = Human. ACTUALLY doing something like that = Unethical.

One thing I would like to see come out of the whole mortgage/housing boom debacle is that mortgage brokers have a legally mandated fiduciary duty to their clients. That means they give you the absolute best terms that they can find and you can qualify for.

As it is now a broker can sell you the most expensive loan they can get you to sign. And if you're relying on the broker to shop the market for you how would you figure out whether or not you were getting the best loans you qualified for?

Before signing any paperwork go educate yourself and ask what kind of mortgage and rates and fee you should be paying at the Grapevineon Broker Universe.

[www.brokeruniverse.com]

TRACY HAM: (COUGH)BULLSHIT(COUGH)

NEVER pay YSP

There are too many mortgage brokers that are total sharks. They depended on people not fully understanding that they are not under some of the same rules and behavior as a typical lender (bank). I can see how someone who is buying their first house or doesn't understand fully how all this works could get suckered. We were on our third house purchase and real estate agents working with specific mortgage brokers were trying to convince me I needed on of these various screwed up predatory loans. According to them I didn't fully understand all my options and the new better options available to me .
I knew it was suspicious.

@SHERRYNESS

I dont find it unethical to charge jerks more than regular people. The fact is you end up spending more time with them, they cause you more stress. More time = more money.

@EmperorOfCanada:

Then write it up as a nuisance fee - don't disguise it as a legitimate fee.

@Tracy Ham and Eggs as played by Walter Mondale: Hey, the truth hurts sometimes. I'm only speaking from real experience. Talked to over a dozen brokers, all over the USA, every one was a lying sack of shit, working only in their own self-interest to take as much of my money as possible with the least amount of work. My guess is that a real bank wouldn't hire these charades of humanity to change out the piss-pucks, much less talk on the phone with serious customers who wanted to talk money.

You, obviously, are the only ethical one left. Congratulations.

I am on the backend of this debacle as an end investor, and we are most certainly seeing the effects of fraud on all ends of the spectrum, from borrower to lender to broker and ignorance from underwriters and us (investors). Brokers are just as much the problem as underwriters, lying borrowers, second-home owners looking to make a quick buck, and the ignorant end investors. Don't blame it all on the brokers. Everybody involved had a hand in this shitshow.

@savvy999: not all brokers are as bad as you depict. it's true that there are quite a few that are looking out for their best interest & want to make the fast buck - but what industry isn't full of these jokers? i ended up buying thru a broker b/c they offered me the best deal - in regards to rate & closing costs. plus, they did all the legwork of comparing offers for me to find the best one. of course, the guy i worked with has been in the business for over 30 years. he's weathered the early 80's, the late 80's, the early 90's & will make it thru this period as well.

there was just too much money in the industry (as we have all witnessed) & it grew fat with chaff. when i was working a p/t retail gig, a new guy came in fresh out of training to manage our store. he worked there TWO WEEKS before he walked off the job b/c he received an offer from a brokerage house - double his current salary, plus 3 weeks in florida to train (on the beach). the kid was 22 years old.

if that kid didn't have the work ethic to at least give notice before he left his current job (where he had just received a promotion), what kind of a broker do you think he became? this is just the type of person the industry attracts. it doesn't mean everyone is like that.

fortunately, it's harvest time & i'm sure people like him are reading the classifieds right now.

Apartment brokers in New York routinely charge renters $100 for credit checks, without a single guarantee they're going to get the lease. That's without counting the crazy fees if you are lucky to get the lease. A broker in Brooklyn told me anyone charging you more than $30 for a credit check is robbing you blind.

@sherryness

There are legitimate fees that i can waive at my own discretion (I am not in this particular industry but I still think my example applies).

I am empowered to waive some fees to give some of my customers a better experience, ie if they are loyal customers, or high revenue, or simply are a pleasure to work with.

All I am saying is if you are a jacka** don't expect the rep to do you any favours if he/she is able.

The mortgage industry is feast or famine, right now it's famine..let em starve. A mortgage broker's goal is maximum cash for minimum effort, so in that respect I suppose we could consider them all financial prostitutes. ..sounds about right :)

No matter how you cut it, a mortgage broker is always going to cost you more - because he is naturally taking a cut and making a profit off of you.

@Tracy Ham and Eggs as played by Walter Mondale: Nice, you manage to insist on the decency of your fellow brokers/lenders while telling someone to go fuck themselves in the same sentence.