you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You

If you are a homeowner refinancing your mortgage loan, you might be concerned with overpaying for the new loan. Choosing the wrong type of lender when mortgage refinancing is a costly mistake many homeowners make. Here are several tips to help you avoid making a costly mistake with your mortgage and why you should avoid mortgage bankers all together.

Homeowners in the United States are protected by the Real Estate Settlement Procedures Act (RESPA) against predatory lending practices. When RESPA was making its way through the Senate and the House of Representatives, the banking industry lobbied heavily to be excluded from the law. Bankers spent millions of dollars “lobbying” against mandatory disclosure and truth in lending so they could continue cheating their customers. When RESPA became law, sure enough, banks were excluded from the legislation.

Because banks are exempt from disclosure laws they are not required to disclose their markup or profit margins on the fees you pay when refinancing your mortgage. The bank can charge whatever they like without disclosing, and no one knows but the bank. This is why you should never take out a mortgage from a bank. You will overpay for any mortgage loan taken out from a bank.

Another type of lender to avoid when mortgage refinancing, is the so called “Correspondent Lender” or broker-bank. Correspondent lenders are simply banks masquerading as mortgage brokers. The catch is because they close on the mortgages in their own names, they enjoy the same loopholes in RESPA laws as regular banks. How can you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You

rotected by the Real Estate Settlement Procedures Act (RESPA) against predatory lending practices. When RESPA was making its way through the Senate and the House of Representatives, the banking industry lobbied heavily to be excluded from the law. Bankers spent millions of dollars “lobbying” against mandatory disclosure and truth in lending so they could continue cheating their customers. When RESPA became law, sure enough, banks were excluded from the legislation.

Because banks are exempt from disclosure laws they are not required to disclose their markup or profit margins on the fees you pay when refinancing your mortgage. The bank can charge whatever they like without disclosing, and no one knows but the bank. This is why you should never take out a mortgage from a bank. You will overpay for any mortgage loan taken out from a bank.

Another type of lender to avoid when mortgage refinancing, is the so called “Correspondent Lender” or broker-bank. Correspondent lenders are simply banks masquerading as mortgage brokers. The catch is because they close on the mortgages in their own names, they enjoy the same loopholes in RESPA laws as regular banks. How can you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You

n RESPA became law, sure enough, banks were excluded from the legislation.

Because banks are exempt from disclosure laws they are not required to disclose their markup or profit margins on the fees you pay when refinancing your mortgage. The bank can charge whatever they like without disclosing, and no one knows but the bank. This is why you should never take out a mortgage from a bank. You will overpay for any mortgage loan taken out from a bank.

Another type of lender to avoid when mortgage refinancing, is the so called “Correspondent Lender” or broker-bank. Correspondent lenders are simply banks masquerading as mortgage brokers. The catch is because they close on the mortgages in their own names, they enjoy the same loopholes in RESPA laws as regular banks. How can you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You

You will overpay for any mortgage loan taken out from a bank.

Another type of lender to avoid when mortgage refinancing, is the so called “Correspondent Lender” or broker-bank. Correspondent lenders are simply banks masquerading as mortgage brokers. The catch is because they close on the mortgages in their own names, they enjoy the same loopholes in RESPA laws as regular banks. How can you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You

you tell if the broker you are working with is actually a correspondent lender? Ask the broker if their company will be closing on the loan in their own name. Correspondent lenders and broker-banks close on their mortgages in the names of their companies; if your broker tells you they close in the wholesale lender’s name, you know that you’re working with an actual mortgage broker.

You can learn more about refinancing your mortgage and avoiding costly homeowner mistakes by registering for a free mortgage guidebook.