First off, Laura… If you were a professional loan officer you would have a little more decency in your tone with respects to your thread replies…
Second, you know you can’t get a heloc done in a week… 5 days… come now… (unless you have title and a complete file to submit)… that’s going to be your argrument… but that’s not what you stated… Some states take 7-10 days to retrieve title policy alone… not to mention the title opinion from an attorney… Stop acting as if you’re “Wonder Woman”. - this only increases to the confusion of the mortgage industry that you mentioned earlier… because now, people are going to think that it only takes a week to get a Heloc…
Thirdly, a professional in this business shouldn’t assume anything…
Where do you get $2-$2400? Something like this estimate tells me that either you are even trying to estimate or you don’t have a very good clue about what’s going to happen in this loan. Neither situation is good.
It’s called a Good Faith Estimate… and your estimate is again deceptive… after all your little calculations… now I do agree that $22k is outrageously high, but without more information how could you decide that $2-2400 is the right answer.
as is this statement you just made:
“This range for cc does not change, this is what I charge for every deal”.
and this one: “Points (if necessary)and title insurance are excluded.” Please.
What? Come back to earth.
Unless your company has a warehouse line, you should be disclosing yield spread (YSP) on every transaction upfront. This is were you become deceptive again… but this time it’s at your clients expense… and with your experience you should know that this disclsoure of ysp upfront is regulated by the Federal Trade Commission or “FTC”.
Here is the correct definition of YSP: disclosure of yield spread premiums. Also known as par plus or service release premiums, these are payments made to banks, lenders, mortgage bankers, mortgage brokers and other originators when they sell or transfer a loan to another lender or to Fannie Mae or Freddie Mac. Current practice requires that premiums paid at closing be disclosed on the settlement statement.
Until Culpepper or some other decision changes how things work, right now it is still necessary for the broker to disclose any rebate on the Good Faith when it will be disclosed on the Hud Settlement Statement according to 24 CFR 3500.7(c). Because the FAQ published by HUD on their RESPA web page (see question 35) requires that the rebate be disclosed on the Hud statement, it must be disclosed on the Good Faith Estimate.
That being said, you’re in violation of RESPA and the FTC.
Some borrowers don’t see the fine print with which most yield spread premiums are disclosed. I can assure you, I have no fine print. You can take steps to prevent that from occurring while you compliantly disclose the premium by pointing out the yield spread premium on the Good Faith when you review it with your borrower and explain what a yield spread premium is, why it is estimated in a range of numbers, and how it is calculated. You may have to spend some time on this issue if the consumer doesn’t seem to understand but the extra time you spend educating the consumer may prevent you from spending much more time responding to a complaint filed by someone who simply did not understand. At this same time, you can address the fact that the Good Faith is an estimate and that you don’t know exactly what the yield spread premium may be, if there even is one. That said, use your common sense. If you know there’s going to be a yield spread premium, tell the consumer that up front and don’t hide behind an estimate that includes zero as a possibility when zero isn’t a possibility. If the consumer is surprised at closing that there’s a yield spread or the size of it, it usually wont be good for you in the long run. Remember that long-used, but oh-so-true saying that a happy customer tells one person but an unhappy one tells 10 (and one of them may be your friendly regulator).
I am for full upfront disclosure in every mortgage transaction.
Lastly, a piece of advice for you.
Experience does not make a good loan officer it makes you old., Honesty and Integrity makes a good loan officer… and if you had the experience you would have a website…
Everybody out of the water! There’s a loan shark.
by the way, who is MPI, Inc… and why are you hiding behind them?