Some Mortgage Originators do not like the Max Points & Fees Caps that the Consumer Finance Protection Bureau (CFPB for short) has placed on the amount of money they can charge for originating your loan. This was created in response to the industry meltdown, and the abuses that came to light. Those Mortgage Lenders have created a large overhead and marketing operation; their ability to maintain that lifestyle is at risk. Game over.
While I do see some minor flaws in the new rules, it is my opinion that they provide great overall protection for the consumer, and thus QM and Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) are good for the market. It opens the opportunity for community-based, independent Mortgage Brokers (like me) to help our neighbors to navigate the ins and outs of obtaining a mortgage at the best rate, and well under the Max Points & Fee Caps that are now in place.
Despite rumors that banks are out to be the exclusive source for mortgage originating (through lobbying Congress and the CFPB to create huge fines to shut down Mortgage Broker’s/Lender’s sources), I am convinced that is not the case. Furthermore I am a strong advocate for the independent Mortgage Brokers. They are here to stay, to the benefit of the future of our communities and neighbors.
Personally, I experience the same things that my clients do, and I am here, in the community, for the long haul.
Listen to my radio show (Real Estate Radio Network, The Todd LaBorwit Show) on WRC, Intelligent Talk 1260 AM, Saturdays 1 – 2 pm, starting April 19.