I have gone over the most common pitfall, gimmicks, tricks and misdirection that Loan Officers use when speaking with their clients. Yes in the past there was some things done that took advantage of people but if some basic common sense was used then these questionable Loan Officers would not have hard a chance to get these so called “Liar Loans” or “Toxic Asset Loans.” The Media would have you believe that Brokers are to blame for the entire mortgage meltdown and if you believe that then you need to read more.
Brokers work as a wholesale channel for YOU the consumer to obtain a mortgage and is by far the cheapest way to bring a loan to the market. This is a fact! So every time hear someone say that it is all the Broker’s fault for the meltdown then you will know that you are not speaking with a qualified person in the mortgage industry. What these people do not understand is that a broker is much like a 7-11 store. Banks come into the Broker’s office and put their products on the Broker’s shelves much like Coke or Pepsi puts their soft drinks on the 7-11 stores’ shelves. So since the Bank’s made the loan programs available to Broker’s to sale how is it possible for these so called “Liar Loans” to be the fault of Broker’s? Anyone that would not agree with this I have countless files that we, as Broker’s, could not get done but Countrywide, Washington Mutual and other big bank have found a way to get funded. So how can this be? The answer is clear but we do not like to be faced with it. The Bank Loan Officers have their share or fraud too but the Media does not like to talk about this, why? And the Bank’s got huge amounts of bailout money, imagine that.
My point is Loan Officers that can not survive financially working for Broker’s change tactics as work for Bank’s. Do not kid yourself, Bank’s are happy to have experienced people work for them. Have you even heard the term “if you aren’t cheating you aren’t trying?” Or “it is only cheating if you get caught?” This mind set is what I have called on my fellow Loan Officers to clean up. For the most part 97% of the questionable people are now gone from the wholesale side of the business and sadly most of them now work for Bank’s.
I can not tell you that a bank or Broker will give you a better deal than the other but I would recommend that you get a Good Faith Estimate and Initial Fees Sheet from both and see which deal works best for you. After all you are the one that has to make the payments.