Mortgage Banks and Brokers everyday are closing home buyers and refinancers at a higher rate than they deserve! This artificial upping of the rate and the
revenue created by doing so are hidden from the customer. This hidden
ripping-off of the mortgage consumer is called Yield Spread Premium overchaging
if the loan is originated by a broker and Service Release Premium overcharging
if the loan is originated by a mortgage bank...you know
Cheap Jerseys From China , Countrywide, Wells Fargo, or Bank of America. Prof. Howell E. Jackson, Associate Dean for Research and Special Programs Harvard Law School,
testified before the Senate Banking Committee on January 8, 2002, and testified
to the following: "...the vast majority of borrowers pay yield spread premiums -
on the order of 85 to 90 percent of all transactions. Moreover, the average
amount of yield spread premiums is quite substantial, on the order of $1,850 per
transaction, making these payments the most important single source of revenue
for mortgage brokers. In other words, contrary to the Department's assumptions,
yield spread premiums are not an optional form of financing made available to a
limited number of borrowers with special needs. Rather these payments constitute
by far the largest source of compensation for mortgage brokers and are imposed
on almost all borrowers who obtain mortgages or refinancings through this
segment of the industry." If Professor Jackson testified on Service Release
Premium that mortgage banks receive
Cheap NFL Jerseys , I'm sure his statments would echo the same as above. The Governments own
numbers, which are grossly understated I might add, say this Yield Spread and
Service Release premium overcharging costs American home owners $16,000,000,000
a year...each any every year! To beat these guys at their own game, you simply
must learn how they price out a loan including this rip-off! Reading this
article is a good start, however, the complete guide to eleminated Yield Spread
and Service Release Premium overcharging is outlined in my ebook, Mortgage
Secrets Exposed!. See the resource box at the bottom for more information.
Understanding how to price out a loan by reading Mortgage Bank Rate Sheets is
really quite easy though it may seem intimidating at first. It will all become
clear as you read this narrative on how we do it at our company, Integrity First
Mortgage, Inc. in Denver. So, settle in and take the 10 minutes to read this
article and understand this practice. Doing so will save you 10s of
$1
Cheap Jerseys ,000 over your lifetime owning and financing houses. A small price to pay indeed!
Here we go! All of mortgage lenders we work with at Integrity First Mortgage,
Inc., furnish us with rate sheets on a daily basis via the internet or by fax.
We follow the rates several times a day in order to properly quote the best
available rate and term to our customers. When reviewing the rate sheet, we also
determine which rate will NOT create a rebate from the lender known as a Yield
Spread Premium. We believe upping your rate to make additional revenue over the
1% origination fee is deceptive, dishonest, and a bad business practice. And
believe me, other companies do not hold that opinion. Let us use the rate sheet
data below to demonstrate how we determine the rate that we quote to our
borrowers. We will also show you using the corresponding HSH Survey data how
other Brokers and Banks are making enormous undisclosed profits in the form of
Yield Spread Premium. Lender Rate Sheet (see below ) data was collected from a
real Wholesale Lender (Ampro Mortgage ) Rate sheet dated 03102006. You can
confirm the HSH data is real as well by visiting HSH dot com. 30 Year Fixed Rate
15 Day 30 Day 45 Day 5.750% 1.350 1.475 1.600 5.875% 0.611 0.736 0.861 6.000%
0.039 0.164 1.826 6.125% (0.392) (0.267) (0.142) 6.250% (0.773) (0.648) (0.523)
6.375% (1.180) (1.055) (0.930) 6.500% (1.623) (1.498) (1.373) 6.625% (2.029)
(1.904) (1.773) 6..750% (2.280) (2.155) (2.030) HSH ASSOCIATES The Nations
Largest Publisher of Mortgage The Nations Mortgage Market: Average Rates for
Residential Mortgages Week ending March 10, 2006 Owner-occupied 1-4 Family and
Condos: Previously Occupied Homes Source: HSH Associates National Ave. SURVEY
CONVENTIONAL MORTGAGES 30 Yr 6.51% In our example, we will quote our borrower a
30 year rate that carries a lock period of 30 days. If we are seeking to earn
only a 1.0% origination fee and NO yield spread premium (back end fee), we will
quote the rate of 6.000%. According to the rate sheet, 6.000% actually costs
.164% Discount payable to the Lender not Integrity First Mortgage. On this rate
sheet, 6.000% is as close to par pricing as we can get. As you can see the next
higher rate, 6.125% creates .267% of Yield Spread Premium and that is not good.
(YSP is shown in (.267) parenthesis). So with this example
Cheap China Jerseys , look at the costs for a loan at 6.00% with us. Rate: 6.000%, $200,000 Mortgage Loan x 1.0% Broker Origination Fee + 0.164 Discount =
$200,000 x 1.164% = $2,328.00 Now we will show how everyone else does it! First
realize that banks and brokers do not usually quote you the rate you will close
with. They will bait-and-switch with low-ball rates and artificially lowered
closing costs to get you to apply with them. Then on closing day, the rates and
costs are higher than you expected, but they claim their Good Faith Estimate was
in deed just that...an estimate. You have the moving van idling in parking lot,
so you sign. They count on the fact you are painted into a corner and have but
one option...sign. How do I know this to be true? One reason is 15 years of
asking folks, "How did your last loan go...any surprises at closing?" About 85%
of those folks answer, "Yes" to that one. Second, every closing exit poll
conducted by Fannie Mae and Freddie Mac show the same results. But the most
compelling reason is up above on HSH Survey data. It shows for t .
