The Feds Are Making More Rules...

Good Morning! ...and, I hope you had a great new year's day!



The mortgage industry is changing again today.



The federal government has mandated new Good Faith Estimate guidelines that go into effect as of January 1. ...More and stricter rules.



I'm all for rules that protect borrowers.



...The feds are squeezing mortgage brokers. They are continuing to make life more and more difficult for them.



In my opinion, if the federal government has their way - in a couple years there will only be a few big banks doing mortgage loans. ...Mortgage brokers will be no more.



...That's too bad.



Fortunately I work for a bank - so I will be safe... ...however, I'm also a broker.



The reason it's too bad - is that as mortgage brokers continue to die off - so does something else... Consumer choice. ...Options for borrowers.



For instance, if you submit a loan to Wells Fargo for a mortgage - if it doesn't fit into their mortgage guideline box you will be declined. ...end of the line.



If you submitted your loan to a loan officer that has the option to bank or broker - he or she could look at the profile of your loan and decide the best place to submit your loan that will best match the underwriting guidelines. ...so you will be approved.



It's very important to you to place your loan with a loan officer that has different options on where to submit your loan. ...just my opinion.



I hope you have a good day today.


Thanks for reading!



Brett