Comments on: HUD Dumps Limits On FHA Origination Fees

By: Lee W.

Lee W. — Thu, 12 Feb 2009 09:14:39 +0000

If only it were that simple. To believe that the percentage of the origination fee has anything to do with determining that a borrower received the best loan terms is idiotic.

In fact the 1% limitation on origination for brokers almost insures that the terms will not be the best available.

By: Angie

Angie — Tue, 30 Dec 2008 03:03:01 +0000

It looks like our government has targeted our earning power once again. Why in the hell would I stay in this business for 1%!!! This is lunacy!!! My fees have NEVER put anyone in foreclosure or delinguency! Their NON PAYMENT of their mortgage put them in foreclosure! Sorry chaps, Uncle Sam can kiss my *ss! I don’t work for free!

By: Frank Pyle

Frank Pyle — Thu, 25 Dec 2008 03:16:33 +0000

Mortgage Brokers are being blamed for an undue amount of of our current financial mess! Retailers like Walmart, Sears, Lowes… should be blamed for the bad decisions of the companies who manufacturer products on their shelves if Brokers should be blamed for providing the mortgages that Wall Street created. Wall Street created the BAD mortgage products and Brokers sold them. Like any other business there are bad brokers, but Wall Street created the products. Banks doing retail mortgages lost the majority of their market share over the past 10 years because they did not provide the service level that Brokers did. Bank lobby groups are doing a great job getting the lost market share back by getting regulation passed to enable banks gain a competitive advantage over Brokers. Why doesn’t a retail bank loan officer have to compete with the same set of rules as a Broker when he provides the exact service/product as a Broker?

By: Andrea McGhee

Andrea McGhee — Wed, 17 Dec 2008 14:05:23 +0000

The cap on FHA origination fees MUST be done away with due to the CREDIT of all yield spread premium to the borrower. The broker would otherwise be limited to earnings at 1% max, gross fee income and cannot survive in business at that rate. Service release premiums used to be paid by wholesale lenders on government loans which went along with the cap on origination. Now that it is gone and any payment made by the lender to the broker must be credited to the borrower it only makes sense that the borrower would need to be charged a higher cost up front for the offset to take place. Remember, Brokers are working with wholesale rate sheets just as lenders are working with secondary market pricing. We both retail to the public but with this new rule the broker will be forced to offer wholesale rates to the borrower while the banks will be able to continue to earn 2.00 -4.00 on the same mortgage.

By: Tom Lawler

Tom Lawler — Sun, 30 Nov 2008 05:58:16 +0000

The latest actuarial review of the FHA MMI suggested that the “non-profit” DPA loan progranm has been a disaster. Thank god it is now gone!

By: Bruno Skopinich

Bruno Skopinich — Sat, 29 Nov 2008 04:04:19 +0000

The free market should determine what someone would pay for a service. Why must fees be regulated?

Peter, I can understand why you write about real estate issues.

“Those who can do… those who can’t WRITE”

It is easy for you to criticize the mortgage fees… because your living is made writing about it.

Maybe we should regulate the earnings of authors!