Full Disclosure on Your Home Mortgage

Living in a true Paradise of Northern Palm Beach County (Palm Beach Gardens) and with having a long holiday weekend full of Barbeque's and the Beach with lots of parties some how the Mortgage topic came up. I know, I found it hard to believe it myself however, I never am one to loose an opportunity to speak. (Anyone who knows me will admit to that)

Starting in October of this year all Mortgage Company's (in Florida) will have to disclose to the Borrower 3 days prior to closing what the lender is going to pay to them in form of a commission also known as Yield Spread (YSP). At one of these parties, I was able to meet a Tax Attorney in the area who proceeded to give me his view on me how this would hurt the mortgage industry. He felt that many people including himself would want to re-negotiate the terms of the Mortgage. After he was finished ( I did not want to be rude) I asked if it was my turn to speak. First off I informed him that this is three days prior to closing and the rate and term was locked so you really don't have much bargaining power other than going back to the beginning and re-submitting the loan. By doing this you will post pone your closing date for sure. I also went on to inform this person that as long as the Mortgage Professional was up front from the beginning that they really would have nothing to worry about.

I have always told my clients this from the beginning:

Time = Money and Risk = Rate

If they have a very quick and easy loan (Fannie Mae) and I really don't have to spend a lot of time on than of course I would not make as much. However, If they have a loan that takes a lot of my time and energy than yes my fee's are according. I always have felt as long as you are upfront about this, you really have nothing to worry about. Making a profit is not a four letter word, as long as you do it with ethics.

I do see the only thing happening when the new Law takes effect is many more Mortgage people leaving the industry because they cannot take advantage of people. To those people who are leaving all I can say is Bye Bye....