ATTN: Mortgage Professionals Not Everyone in Florida is Stupid! Part II

When I wrote the original Post ATTN: Mortgage Professionals Not Everyone in Florida is Stupid I really did not anticipate a follow up post to that one.  However,  these lower than dirt people who claim to be professionals (also they are Loan Officer and Not Licensed) are coming out of the wood work to attack this couple.

Being in the Mortgage Industry as long as I have, I understand that this couple would be high on all lead sources because their Adjustable Rate Mortgage (ARM) came due.  With business being harder today I know many companies are buying more and more leads to generate their business. (I don't agree with that business model but I understand it)

This couple has started a domino effect unfortunately with lead companies.  First they are on "Exclusive Leads" because of the fact that their ARM is due but now because they have talked to Loan Officers who ran their credit now they are also on Trigger Leads.  This couple now is being bombarded by phone calls and direct mail.

Luckily for this couple they are very close with their family who sends me all the paperwork to review for them.  Yesterday I received another E-mail from the family which left me even more speechless than before.  Don't get me wrong everyone in entitled to make a profit but by misrepresenting yourself and doing bait and switch this is just down right illegal.

Just to give you an overview of the Good Faith Estimate that was provided of course the Loan Origination Fee 1% and the Broker fee 2% where separate (right their that is a MAJOR NO NO).  The reason why this is illegal is because you are misleading the client in your fee's.  The truth is you are charging the client 3% even before they get into Yield Spread Premium (YSP). The rest of the Good Faith Estimate where mostly correct however, the taxes (escrows) where way extremely low on the property which of course would change if the client did move forward with the loan.

The Loan Officer told the couple that they where going to get a very exclusive FHA product.  Well considering the property is worth $115,000 and the Loan Officer wrote the Loan at $140,000 I am not sure what magic wand they have but maybe it is a blind Underwriter.  The funny thing is this pretend Loan Officer (a Real Professional he is not) to increase the loan amount even told them they can pay off $10,000 in Credit Card debt.

After reading the Good Faith I called the couple and asked them the following question:

How Do I Get Paid?

The couple told me by closing loans. Which is the correct answer.  I am not saying that I am perfect and I can do everything but I can do simple math.  Their current Mortgage payment went up roughly $100 a month..but in order to close their loan they would need to bring a minimum $10,000 if not more depending on the program.  The $10,000 would just be able to keep their payment around the same in what they are paying now. In the end they would accomplish nothing.  I also infromed the couple that now with President Bush and the Lenders working out a deal on Sub-Prime clients that most likely the would qualify for this.  Which is why I told them not to do anything. With the exception of, if they did have the $10,000 they should payoff the Credit Card debt so their monthly bills will go down.

I am not blaming Loan Officers versus Mortgage Brokers but the truth of the matter is that when you are not licensed it becomes very easy to churn and burn mortgage companies.  By being licensed even if you keep switching companies where you hang your license the state keeps track of you and you are held to a higher standing. Now I am also not naive to the fact that I am sure their are Mortgage Brokers who do the same as these Loan Officers are doing.

Please remember if it sounds to good to be true it usually is

What really sets me off is when I joined Active Rain over a year ago I found very knowledable and extremely professional individuals on the network. Now a year later they have grown to over 61,000 members and I know it is hard to police the site but I have found that both of these Good Faiths came from members of Active Rain. They are not very active but they are on listed on this site.  I know Active Rain really can't police all the members. I guess even the cleanest homes get roaches in them as well.

For More Mortgage Advice: Mortgage Advice in South Florida

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