February 1, 2008

Mortgage broker tales

This is a good on how mortgage brokers work in the states, from reading this you will be able to get a better understanding of how and why the mortgage sector in the USA is in such a terrible state.

Brokers pad genuine fees and invent new ones to make more money.
Brokers have another name for “Origination Fees” — Profits.
Mortgage Brokers make clients pay higher rates to increase profits.
Mortgage brokers change the numbers at closing – “Oops!”
Brokers overcharge because you shop the loan or annoy them.

Now this has to be truly sub prime, and it is no wonder that so many homeowners have found themselves in a position where they are unable to pay back the loans that they have agreements on.

Source [Joe Consumer]