Wells Fargo has been in the media quite a bit recently for terrible things the bank has done to their consumer clients and employees. It will be interesting to see how this all plays out…this is another example of how a powerful large bank has taken total advantage of consumers. [Read more…]
If you are buying, selling or refinancing a home right now, you might be quite surprised to learn about the current state of appraisals. It ain’t pretty…far from it. [Read more…]
There is no shortage of junk mail. If you have just bought a home or refinanced a home, you’re a very popular person with folks trying to sell you something. Some of the offers in the mail, like discounts to stores, are kind of nice…however other offers are just plain junk, if not worse.
If you’ve been reading my blog for a while, you know one of my pet peeves is misleading junk mail that mortgage companies will blast out to attempt to generate business.
I did a little experiment on Tuesday. One of my Seattle home buyers asked why there’s a difference between the rates I’ve provided and those you can find posted online. I explained to him that the rates posted online are often not available and typically those sites are used for “lead generation” purposes. When consumers enter their email addresses and phone numbers, they may start to feel very popular by being inundated with phone calls and emails by mortgage lenders. When someone fills out a form requesting mortgage information or a rate quote online, they are considered a “hot lead” and their contact info is worth money and may be sold and re-sold.
Recently a piece that was aired on ABC news about mortgages and was brought to my attention. It’s been a long time since I’ve seen something so misleading and sensational about what consumers should watch for when obtaining a mortgage.
The segment features Erin Lantz from Zillow who claims to have saved a couple thousands of dollars on their home mortgage. Erin is Zillow’s Director of Mortgage Business and prior to Zillow, her lending career was at Countrywide and Bank of America, during the subrime era.
Following the release of the QM and Ability to Repay rules from CFPB, I decided to try to read through the proposed Loan Originator Compensation rules. I found this pretty interesting. Instead of making additional regulations for Mortgage Originators who work at banks or credit unions, why not just make them subject to the SAFE Act and require them be licensed?
APR was created by our government to help consumers select a mortgage rate. It was intended to be a tool that would allow someone to simply compare various mortgage scenarios and shop mortgage lenders for the “best rate” at the lowest cost. Unfortunately, APR is probably not providing an accurate view of what the true cost of the mortgage, whether it’s for a home purchase or refinance, is. [Read more…]