David,

YSP is an un spoken subject by many, and with this market change, it might help for certain changes to go into affect, like some more education for those uneducated brokers out there, god knows they need it.

Tom Weiss

if you read on to my site, you'll see that I'm definitely not talking about NOT educating people

David, I work for a direct lender so this is not an issue with us, but I do not see what the big deal is about know what a Broker is making on a loan.  If his rate and closing costs are right there with everyone else's, what difference does it make what he/she makes.  The bottom line is the Interest Rate charged and total amount of Closing Costs paid, and those are always as far as I know disclosed on the GFE and HUD.  If a Broker is taking advantage of Borrowers with high Closing Costs, they will just go to someone who is cheaper, and if they do not, it is their fault for not comparing rates and costs with others.

I agree but some people are making a big fuss... if you read on to my website you'll read more in depth about what I feel

we brokers shouldn't be judged on how much we make but how good our rates and fees are... for instance, we have historically had .375% better YSP from Countrywide due to volume... what does that mean?  It means that if I need to lower my rate to get a customer, I may have that ability depending on how lower rates pay... but if it is me vs you are we going to have an issue with clients that see my YSP is $4500 at the same rate and terms as you??

I think it is a waste of legislation YET AGAIN

David,

I don't undersatnd, exactly what you response was, I did go to your website, and read it, I could probably afford to read it again, but I only threw in an additional comment of my own because I do that. I didn't mean to cross any lines.

Let me know, if I misunderstood you,

Tom Weiss

Personally, I have no problem disclosing YSP on my files.  We have the option to use our warehouse line which doesn't require us to disclose our yield, and we have the option to broker out the deal.  Majority of the time (not all the time) I can get a better rate by brokering the deal so that is what I usually do.  So even though I have the ability to "hide" my YSP, I normally don't.

A lot of the laws that they are trying to pass around the country are backed by the Mortgage Bankers Association's lobbyist. 

 Did anyone see the protesters in front of the capital building in Minnesota demanding the attorney general to ban stated income loans from brokers only?  Of course not!   Do you know that all of the local lenders can still write stated income loans in MN? 

 Why did they pass a law that the public didn't ask for in MN?  Why are they trying to enforce laws on brokers but not lenders?  We need to support our local Mortgage Brokers Association more now then ever.

David.... just as George has mentioned, there shouldn't be a big deal if you are right there with everyone. Even though I am a banker, the transparency issue semi cracks me up. If my rates and fees are better than most out there, who cares what my YSP is.  Especially as you stated, that you aren't out to take advantage of your clients anyhow.

What cracks me up is that many lenders are putting a range down, of what they can make on the back end. How does this help?  That's if they are trying to get everyone on board with transparency. To me it sounds like there is not consistency.  

Jason... I don't mind telling people what I make.. but I think that regulation as such is assinine

it doesn't really do anything to the real culprits

and it creates a sub-culture of "flat fee" people that appear to be undercutting the rest of the industry whether they are providing the same or better service... or even adequate service

it can't be a decision of who is getting paid what but rather who is doing the best job and getting the RIGHT rate

David... bingo.  That was basically what I was trying to say.  I have been tired as of lately, so sometimes I might not make sense.  In any case, it just gives that lender the ability to confuse the consumer even more by telling others to compare their YSP's.  It's bad enough when some of these loan officers reduce the title and escrow fees to make them look cheaper. Now we have people picking apart the YSP and screaming transparency. Again, if I have a low rate and low fees, but great service, who cares about the YSP. To me, it's a sales persons excuse to add more confusion. 

To the Transparency people.... I'm not after you or your movement

I am more upset with the fact that it is being forced on us rather than legislate something positive that will impact the majority of borrowers

I don't care what someone else is making who is my competition... if they're making that much more and offering the same rate/terms then there is something wrong in my pricing!  That being said - sometimes I have to eat a bigger commission to serve the client

but what happens on the backend should not be the basis for competition... should I tell people that I pay my processor $10 so they can shop around for a mortgage broker that only pays $9??

It is immaterial to the loan so why does it need inclusion?

It doesn't

that's my point.

I AGREE that there are transparencies that should be put into effect - mainly on lenders that hide fees like the 6.125% fixed on TV with a 6.403% APR - what fees are not disclosed that could raise the APR that much in one loan??

That's where transparency needs to be applied

As a whole...legislation in this country regarding the mortgage industry is just focussed on the wrong crew... which I have a post to address due on my website soon!

David,... that is one that irks me, are those DiTech commercials that have that low rate and a high APR. Sounds like you quoted one of their commercials. And you are right, some lenders can disclose what they want and disclose it in the APR or not....  which is not right nor is it legal. But they do it anyway.

Overall, they do need to re-look at this and get it straight.... getting it correct and making everyone to be on the same page. How about starting there.

David - that would be FANTASTIC!!!! For those ripping people off  - it would be known, for those doing a great job for a great value would be even more appreciated. We can hope can't we..keep us posted