Mortgage Ripoffs and Money Savers by Carolyn Warren: a book review

I just finished reading Carolyn Warren’s book, Mortgage Ripoffs and Money Savers. As  I mentioned over the weekend, this is a longer read at 222 pages…it is full of information that I feel is very useful.   If I had to be critical, I would say at times the book is a little on the sensational side…with that said, it does have me thinking.   I’ve only worked for one mortgage company and Carolyn, the author, has not only worked for several mortgage companies, but also varies types of mortgage companies (wholesale, subprime, bank, consumer loan, etc.).  She has been more exposed to various types of Loan Originators than I have.   I wonder how much of her experience is more subprime/consumer lending vs. working for an ethical mortgage company?

I do have experience with Loan Originators from my previous career in the title and escrow industry and I certainly developed an opinion of many in the profession.   Are there really that many bad Loan Originators out there?  I know so many outstanding Mortgage Professionals who I’m proud to be assoicated with…and I also know there are some giving our industry a black eye.  It will be interesting to see how many do not pass the mustard with the state’s new licensing requirements (this law only applies to Loan Originators who work for Mortgage Brokers: not mortgage banks, credit unions or consumer finance companies).   Anyhow, back to the book review…

What is most valuable with Carolyn’s book is that she teaches consumers how to shop for a Mortgage Professional…not interest rates.    She also has great points on how to compare good faith estimates and understanding YSP (Yield Spread Premium).   I do have some small issues with how she covers YSP.   I’ll have to do a separate post to dig into this issue and being a Correspondent Lender.   

Bottom line, she is providing consumers with a lot of information to help them navigate getting a fair deal on their mortgage and I am all for that!