Truth in Lending has Taken a Step Forward

Several of Bankrate's clients have been hit with a $46 million judgement for "bait and Switch" techniques". I posted a blog on this earlier Bankrate is feeling the Heat, and am pleased with the results. The courts have gone after a big company, Novastar, as well as several small companies. To get the details, read the Inman article Novastar, other Bankrate Clients Hit with $46, Million Judgement.

Bankrate has fostered a climate of deceit for to long and it's good to see that it is no longer tolerated. They, and many other Internet "information" sources are really nothing more then lead generation sites. I don't have a problem with that, but when I'm told by clients that I have to compete against a rate that I know cannot be done, it makes me, and our industry look bad.

When I see lenders quote rates and closing costs only to change them later it makes me sick. When I see Realtor website linking to Bankrate or Lending Tree I shake my head in amazement. If only they knew the truth...

What about looking out for the best interests of the client?

Lenders, this means honest and accurate GFE's. Do your job!! Make some phone calls!

Realtors, this means communicating with your client's lender to make sure that the deal is solid. Don't look away OR steal the lender's client and refer him/her to your lender. Communicate.

Borrowers, this means using some common sense. If it looks to good to be true, it is! We all get our loans from the same pool of investors and rates/fees shouldn't be that different. Until a loan is approved, with all conditions signed off and a rate locked, you don't have a deal! Don't shop for the lowest rate/fee, shop for the lender who is honest, can get the deal done and offer a fair price.