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MortgageBoarder
4463 Posts |
 Posted - 05/01/2008 : 4:12:53 PM
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So I was at Caravan this morning and a couple BofA LO's were there passing out their marketing pieces and speaking for the day. They touched on their "no fee" loan which is a "great way to get your clients into a home with minimal cost". Whatever, I know how no fees work... but it's even better with BofA!
After reading the fine print on the back, it lists everything that is included in the "no fee" loan. It then states that Closing FEES are different than Closing COSTS.. meaning even though you pay "no fees", you will have to pay "closing costs". WOW
The last little highlight that they forgot to mention is you must already be a BofA customer... meaning if you don't have a bank account with them, the LO is probably going to push to open up some type of account with a Banker before you can even apply for the loan.
I didn't think LO's were ballsy enough to get in front of a Realtor(r) community and attempt the good ole bait & switch!!
I guess that's marketing at it's best though! |
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katroberts
1251 Posts |
Posted - 05/01/2008 : 4:15:35 PM
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| Which topic did you pick to discuss today in front of your realtor group? |
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dkendall1979
11058 Posts |
Posted - 05/01/2008 : 4:16:23 PM
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I believe they mean "closing fees" as in Down Payment.
The "NO FEES" loan really means not a single penny in fees. |
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racerx
11586 Posts |
Posted - 05/01/2008 : 4:26:18 PM
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quote:
Originally posted by MortgageBoarder
The last little highlight that they forgot to mention is you must already be a BofA customer... meaning if you don't have a bank account with them, the LO is probably going to push to open up some type of account with a Banker before you can even apply for the loan.
Opening a free checking account really isn't that big of a deal. |
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:27:34 PM
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Oh it was great... no one really paid attention to their "no fee" pitch. Then I got up and delivered this speech...
"Fraud, lies, illegal activity.. These are all actions that have contributed to the current, fragile state of the Banking & Lending industries. People are quick to point the finger... "Oh it was Lenders, oh it was Realtors(r), oh it was Bankers, oh it was Borrowers.. But you know what? It doesn't matter who did what at this point, because unfortunately, the damage is done.
What we CAN do is evaluate the mistakes made, learn from them, & do everything possible to combat fraud from here on out! It happens in all sectors of the Real Estate industry, in many different transactions.. So if it presents itself to you in one way or another, simply assess the situation, and do the right thing. In the end, our industry will become stronger as a whole because of our efforts.
On a lighter note, let's talk about positive thinking and positive doing. It's great that we all gather here & create an amazing presence & energy, but let's be sure to do this every day in the community outside of this room!! With your clients, your associates, your friends and your family.. Make sure to always enforce and reinforce the best point of view in all situations.
Over the past 12 months, thousands of people have slowly but surely fallen out of the Real Estate community. I've seen it personally, & a lot of these fallouts started with conversations like, "Man, I'm never going to close a deal in this crazy market!". Or, "Just watch, next month will be even worse than this month". Let me tell you all something, we are well aware of the negative factors constantly surrounding us. We also know, that no good comes without bad.. So again, evaluate those occurrences, and do something positive about it. And when it's all said & done, I promise you'll be just fine."
Sorry if you guys didn't care to read that... I actually am thinking of posting them weekly, just to send out good vibes.. If people would like that I can certainly start doing so! :)
quote:
Originally posted by katroberts
Which topic did you pick to discuss today in front of your realtor group?
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lucky1s
3639 Posts |
Posted - 05/01/2008 : 4:29:16 PM
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I always use B of A's rates to close my deals.
Works every time. |
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:29:22 PM
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Nope... not referring to down payment. They are referring to credit fees, application fees, and other "junk" fees that they include on a typical deal. Closing costs still consists of origination, T&I, Title & Escrow.
quote:
Originally posted by dkendall1979
I believe they mean "closing fees" as in Down Payment.
The "NO FEES" loan really means not a single penny in fees.
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808
2871 Posts |
Posted - 05/01/2008 : 4:32:03 PM
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there's no bait/switch in their no closing cost program. As far as being a BOA acct holder how hard is it to get the borrower to open up a $100 Savings acct.
What they don't compete against are N/O/O properties & Refi deals. Also I think you have to have 10% down & a 700 FICO |
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quest
266 Posts |
Posted - 05/01/2008 : 4:35:03 PM
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I think dkendall is right:
Check the link
http://www.bankofamerica.com/loansandhomes/index.cfm?template=closing_costs
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:35:36 PM
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There are closing costs still, there are just no extra "fees". Obviuosly they can be negotiated, and BofA will pay those closing costs if needed.
quote:
Originally posted by 808
there's no bait/switch in their no closing cost program. As far as being a BOA acct holder how hard is it to get the borrower to open up a $100 Savings acct.
What they don't compete against are N/O/O properties & Refi deals. Also I think you have to have 10% down & a 700 FICO
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:39:42 PM
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Followed by...
http://nofeemortgageplus.bankofamerica.com/terms.html
So maybe I'm just confused, which is possible!! But I interpet this as all the fees that say $0 are truly $0. The fees that say "Paid by Bank of America" will be charged, but they CAN be paid by BofA if you'd like...
quote:
Originally posted by quest
I think dkendall is right:
Check the link
http://www.bankofamerica.com/loansandhomes/index.cfm?template=closing_costs
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1stintegritymort
1298 Posts |
Posted - 05/01/2008 : 4:40:44 PM
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quote:
Originally posted by MortgageBoarder
Nope... not referring to down payment. They are referring to credit fees, application fees, and other "junk" fees that they include on a typical deal. Closing costs still consists of origination, T&I, Title & Escrow.
quote:
Originally posted by dkendall1979
I believe they mean "closing fees" as in Down Payment.
The "NO FEES" loan really means not a single penny in fees.
you are right. i called them to see what it was all about. they still charge you the prepaid items. they also like to call it discount points... making the borrower think thats what it costs to get that rate. i asked them on the phone isn't that the same as origination? they told me that origination fee is what brokers charge to make money, we charge a discount which goes to get you that rate. i played along to see what rate they would offer and it was a 6.5%. at the time the rates were low and 6.5% was paying almost 4 ysp.
countrywide also has been advertising their no closing cost loan too. they were even worse. same fees charged as BOA but their rate was 7%. |
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dkendall1979
11058 Posts |
Posted - 05/01/2008 : 4:40:50 PM
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I don't work for BofA, nor do I care for BofA, but I can tell you that their "NO FEES" loan has NO FEES!
Nothing. Not a penny in loan fees. No hidden fees. No appraisal, no title, no tax service, no processing, NOTHING.
Prepaid interst, but that is NOT a fee. Maybe that's what the disclosure is about since borrowers might interpret that as a fee? |
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:43:22 PM
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| Well I'll take your word on it David. Maybe I'm just reading too deeply into it, because the language used is leading me to believe it's deceiving. My bad! :) |
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MortgageBoarder
4463 Posts |
Posted - 05/01/2008 : 4:46:29 PM
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Interesting..
quote:
Originally posted by 1stintegritymortgage
quote:
Originally posted by MortgageBoarder
Nope... not referring to down payment. They are referring to credit fees, application fees, and other "junk" fees that they include on a typical deal. Closing costs still consists of origination, T&I, Title & Escrow.
quote:
Originally posted by dkendall1979
I believe they mean "closing fees" as in Down Payment.
The "NO FEES" loan really means not a single penny in fees.
you are right. i called them to see what it was all about. they still charge you the prepaid items. they also like to call it discount points... making the borrower think thats what it costs to get that rate. i asked them on the phone isn't that the same as origination? they told me that origination fee is what brokers charge to make money, we charge a discount which goes to get you that rate. i played along to see what rate they would offer and it was a 6.5%. at the time the rates were low and 6.5% was paying almost 4 ysp.
countrywide also has been advertising their no closing cost loan too. they were even worse. same fees charged as BOA but their rate was 7%.
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quest
266 Posts |
Posted - 05/01/2008 : 5:39:53 PM
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| If you look at BofA and Wells retail, they are both beatable rates....WaMu retail is quoting 5.625 with .875 origination points....pretty good |
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Mandyvilla
3629 Posts |
Posted - 05/01/2008 : 9:25:21 PM
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Sorry to disappoint, it's really no closing costs. Covered fees include (but not limited to): all attorney/title fees, both title insurance policies, survey if required for the title policy, pretty much anything the title company/attorney charges, recording fees, appraisal fees, all lender fees....Discount points are not covered, the same as anything with the word "tax" or escrow/reserves or optional items (survey - home inspection, however, we do cover the owner's title policy).
Yes, you must be a customer, but it's not that hard. Checking, savings, credit card, many are already customers.
We do not require taxes and insurance to be paid in the monthly payment, the borrower gets to handle that themselves. It's only by special request that we escrow. There is no mortgage insurance and just recently, we added a one year free Borrower's Protection Plan, which gives the primary borrower coverage for disability, involuntary unemployment, 2 consecutive hopital stays or death will pay out a benefit. Pretty cool to tell someone you are going to give them a year of P & I for involuntary unemployment. No one cares about the death or the disability, it's not going to happen to them. But the eyes sure light up with that perk.
Price has been a relatively small issue, only because any seller concessions can then be applied to buy down the interest rate.
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broke_er
29 Posts |
Posted - 05/01/2008 : 11:18:21 PM
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YOU GUYS ARE MISSING THE MAIN POINT...
THIS IS NOT A 30 YEAR FIXED.
WaMu NOW HAS THE SAME EXACT LOAN... SINCE "MORTGAGE PLUS" IS COPYRIGHTED, THEY CALL THEIRS "WAMU MORTGAGE PLUS" LOL. (I LIKE WAMU A LOT BTW ) )
THE LOAN IS ESSENTIALLY A FIRST LIEN HELOC, IN WHICH YOU CAN ACTUALLY USE PARTS OF THE LOAN AND CALL IN AND FIX THE RATE, AND LET OTHER PARTS OF THE LOAN FLOAT UNTIL YOU LIKE WHERE THE CURRENT RATES ARE AND CALL IN AND FIX THAT "CHUNK OF THE PIE" AS WELL. YOU CAN ALSO DO IT THE OTHER WAY, CONVERT YOUR FIXED RATE BACK TO ADJUSTABLE IF THE PRIME IS DOING WELL. JUST LIKE BOFA'S LOAN, WAMU'S HAS ZERO FEES, AND IS A GREAT OPTION FOR PEOPLE LOOKING TO PURCHASE AND WHO ARE REALLY FEE SENSITIVE... ALTHOUGH ITS NOT FOR LOW DOWN PAYMENT BORROWERS.
AT THE END OF THE DAY, IT'S TERRIFIC MARKETING BY THE MAJOR BANKS WHO CAN LEVERAGE THEIR BANK ACCOUNT OFFERINGS TO GET BORROWERS TO SIT DOWN AND TALK BUSINESS. THAT'S ALL YOU WANT TO DO RIGHT NOW, IS GET THE BORROWER IN FRONT OF YOU, AND SCARE THEM FROM SHOPPING. IT'S WORKING IN THE BRANCHES... TRUST ME!!! |
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