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lorivalen
6 Posts |
 Posted - 08/27/2008 : 09:38:06 AM
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We received an announcement yesterday from Countrywide starting 8-29 all brokers are required to submit the Mortgage Broker Fee Agreement and Disclosure with all packages. Any loyalty I have to them is due to my AE. He is absolutely fantastic and he should go work someplace else. Everybody in my shop sent him an email telling him we will no longer send our loans through Countrywide as long as we are required to have our borrowers sign this form. I encourage all you brokers that use CW to stand tall and protest this offensive form.
Below is the form:
[b]MORTGAGE BROKER FEE AGREEMENT AND DISCLOSURE
Do not pay any fees before entering into this agreement with your Broker.
BROKER SERVICES – A mortgage broker charges fees to arrange a loan from a lender who will fund the loan. You have engaged [Broker Name] (“Broker”) to arrange a loan for you in the amount of $(A) (Note: For a line of credit, the loan amount is the maximum credit limit on the line).
Broker will assist you in obtaining a loan, but Broker does not distribute the products of all lenders, and so cannot guarantee you the lowest price or best terms available. Be sure that you understand and are satisfied with the product and terms Broker arranges for you, and that you compare loan offers from different sources.
BROKER FEES - You agree to directly pay Broker the following fees:
Application Fee: $(B) [not including any application fees paid to lender]
Processing Fee: $(C) [not including any processing fees paid to lender]
Other: $(D) [describe]
Broker Fee (Points) $(E x A) This fee will not exceed (E)% of your loan amount
These fees will be paid with cash you must bring to closing, or, depending on your loan approval, you may include some or all of these fees in your loan amount and pay your Broker at closing out of your loan proceeds.
You also agree that the lender may pay your Broker additional fees. Any additional fees paid by the lender to Broker will increase the interest rate on your loan beyond what the interest rate would be if some or all of these fees were paid directly by you. Based on current market rates and your current loan request, the lender may pay Broker $(F), but it may go up to $ (GxA) based on your current loan amount of $A. In no event will the lender pay the Broker more than (G)% of your loan amount.
Once your interest rate is locked and your loan amount and terms are finalized, your Broker will be able to tell you the exact amount of all fees.
BASED ON A LOAN AMOUNT OF $(A), THE MAXIMUM AMOUNT OF FEES THE BROKER MAY RECEIVE AT CLOSING IS $[B+C+D+(ExA)+(GxA)].
THE FEES IN THIS AGREEMENT ARE FOR BROKER SERVICES ONLY AND DO NOT INCLUDE OTHER CLOSING COSTS OR CREDITS FROM BROKER OR OTHER PARTIES. See your “Good Faith Estimate of Closing Costs”. (Note: If your application is for a line of credit, you will not receive a Good Faith Estimate. Rather, at the time of application, you will receive an estimate of the closing fees. You may also request an itemization of those fees.)
__________
DO NOT SIGN THIS DOCUMENT IF YOU DO NOT UNDERSTAND IT.
Borrower: Co-Borrower:
Signature: Signature:
Date: Date:
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VVance
5700 Posts |
Posted - 08/27/2008 : 09:43:33 AM
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"Broker will assist you in obtaining a loan, but Broker does not distribute the products of all lenders, and so cannot guarantee you the lowest price or best terms available. Be sure that you understand and are satisfied with the product and terms Broker arranges for you, and that you compare loan offers from different sources."
Real nice! |
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drichey
28 Posts |
Posted - 08/27/2008 : 09:43:41 AM
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| CITI makes you do same type of form and in Texas we have to have one in every file for Texas Laws |
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RGK2394
2247 Posts |
Posted - 08/27/2008 : 09:45:33 AM
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Wow...I got this yesterday, but didn't look at it.
This is by far the worst one of these to come out and has simply guaranteed that C-Wide will become a lender of last resort. |
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katbunk
4181 Posts |
Posted - 08/27/2008 : 09:47:01 AM
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| Chase is now requiring the same form. |
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lorivalen
6 Posts |
Posted - 08/27/2008 : 09:48:18 AM
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| I know that particular paragraph was very disturbing. In the email to my ae i mentioned that and said.. yes although we may not have every program available per that lender we are a broker so most likely we can get "that program" from another lender. and probably at a better price. |
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hertz
1610 Posts |
Posted - 08/27/2008 : 09:48:55 AM
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| Similar one for Suntrust. |
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CoolMtgGuy
12187 Posts |
Posted - 08/27/2008 : 09:55:51 AM
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| If you stop using CW for that reason you will soon be out of business as it is becoming a common requirement across the board for all mainstream lenders. Chill out and live with the rules. Remember that he who has the gold makes the rules. Who has the gold ... you or CW? |
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Xanthan Gum
1247 Posts |
Posted - 08/27/2008 : 10:00:23 AM
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| This is no big deal. My company already does this on our own. I have never had a customer ever make a stink about it. Disclosure is our friend. |
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VVance
5700 Posts |
Posted - 08/27/2008 : 10:11:33 AM
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quote:
Originally posted by Xanthan Gum
This is no big deal. My company already does this on our own. I have never had a customer ever make a stink about it. Disclosure is our friend.
While it may seem like no big deal, think of it this way. Your wholesale source should be acting in your best interest to promote your credibility with your borrower. While it's understood that there are Federal guidelines and forms to be adhered to, I don't really understand why they would incorporate such insulting language. Why not add "Brokers can't be trusted" in there as well.
This would be enough for me to pass on using them, which I refuse to anyway. Otherwise, if you must, why not include your own disclosure pertaining to CW's shortcomings, of which there are many. Think they would like that? |
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bramous
1077 Posts |
Posted - 08/27/2008 : 10:12:46 AM
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Why would you send a loan to CW in the first place?
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lorivalen
6 Posts |
Posted - 08/27/2008 : 10:18:35 AM
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| Thank you I agree that the "language" is insulting. I'm all for disclosure, but come on really. The only reason I use CW on some of my deals is occasionally they have a good rate and again my ae is wonderful. I really hope he goes someplace else. |
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CoolMtgGuy
12187 Posts |
Posted - 08/27/2008 : 10:28:13 AM
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Sounds like this is your first exposure to this type of required disclosure. It won't be the last so get over it.
If you use a lender because you like your AE and sometimes for a better rate, those are good reasons. These days, there are so few wholesale lenders left that it makes no sense to whine about which one is doing this or that. Just get your loans underwritten and funded and be happy that you still could do that. Brokers have no leverage with any lender today so again ... get over it.
Just for info purposes, which are the other lenders that you are currently using?
quote:
Originally posted by lorivalen
Thank you I agree that the "language" is insulting. I'm all for disclosure, but come on really. The only reason I use CW on some of my deals is occasionally they have a good rate and again my ae is wonderful. I really hope he goes someplace else.
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liverichly
7341 Posts |
Posted - 08/27/2008 : 10:56:42 AM
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quote:
Originally posted by bramous
Why would you send a loan to CW in the first place?
Exactly. I don't not use Countrywide because of their broker fee disclosure (BFD), I don't use Countrywide because they suck most of the time and all of their loan programs are offered by other lenders (actually I can't think of one niche that Countrywide still offers). Their BFD isn't that bad though, I've seen worse. We are also required to have all of our clients sign a very similar form, and I've never had anyone make a stink about it. My clients come to me because they know the level of service they'll get is 2nd to none, while I do offer very low rates & competitive fees, my service is what gets me my business... not my rates & fees. |
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assassin17
9055 Posts |
Posted - 08/27/2008 : 11:02:06 AM
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| I think it's time I pass around my 'standard' pamphlet which explains how banks collect SRP. Customers love that one. |
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mganovsky
2123 Posts |
Posted - 08/27/2008 : 11:03:13 AM
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At first look I thought it was a joke written by the OP, then I was insulted by the verbage; but after reading it again in reality it is true and to the point. If you are up front to your clients and explain all fee's then you should not have a problem.
If not and you do not like it then use some one else that has a different version or verbage. Or align your self with a Bank as an employee and you will not have to worry about it.
With C/W this may be there way of saying they really do not want wholesale Biz. |
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liverichly
7341 Posts |
Posted - 08/27/2008 : 11:06:33 AM
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quote:
Originally posted by assassin17
I think it's time I pass around my 'standard' pamphlet which explains how banks collect SRP. Customers love that one.
Perhaps you should blog about it or have a local newspaper write up a story about it... with IndyMac, Countrywide, etc., all in negative spotlights it just might get printed. |
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Cash Doctor
881 Posts |
Posted - 08/27/2008 : 12:35:04 PM
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While the verbiage is a little cheeasy. I have had a mortgage broker agreement which is very similar and have been having my customers fill it out on every loan for at least 18 months now. I thought this was standard.
You guys do more than just a GFE and 1003 right? My conventional package is 21 pages disclosures etc.. |
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AK__47
1683 Posts |
Posted - 08/27/2008 : 1:29:35 PM
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quote:
Originally posted by assassin17
I think it's time I pass around my 'standard' pamphlet which explains how banks collect SRP. Customers love that one.
I would like to see it. |
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Boulderco
1782 Posts |
Posted - 08/27/2008 : 1:51:18 PM
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| Yep. This will be universal before you know it. It's the way it is. Equivalent language has been required in Colorado for a year now and while I've had a few people ask about it, no one has had a problem with it. |
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FundStar14
1107 Posts |
Posted - 08/27/2008 : 2:06:02 PM
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| I agree, the disclosure is no big deal and many lenders have been using similar forms for awhile now (Our own inhouse disclosures are very simlar with slightly better wording). The amazing thing is that you still use CW. Their rates are hi, their service ***** and they have an aggressive retail force that has been rumored to get a hold of wholesale files.... |
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