Stop allowing this to happen, it starts with you the realtor. Please help!
One of my top agents sent me a refinance opportunity for a Veteran. If someone calls you at 9 pm to refinance you know something bad happened. So, Husband and wife both disabled veterans purchased a home this year. He tells me a story about how his rate got so high and here is what this loan officer told them. Your debt to income ratio is very high and our computer said we have to charge you this higher rate and 1% origination. He was over charged by .625% in rate and was charged 1% origination because they were told the lender required it. 1% origination is a maximum fee you can charge to cover processing, underwriting etc. Can charge up to is not a requirement and if you charge any Veteran that 1% origination or any portion of, you should be ashamed of yourself. This loan officer just called tonight to say your 6 months is coming up to refinance to a lower rate. He dropped the rate .25% to do this all over again and start the churning process every 6 months until they are at the rate they should have received in the first place. Why 6 months? That is the recapture period all lenders have if someone refinances the lender recoups any commissions paid to the loan officer and company. I have until August 5th to refinance this loan so this leach loan officer gets charged back all of his commission. Needless to say I can't wait to go through the closing package from the purchase to find out who this loan officer is. I know there are bad seeds in every company but any manager or net branch that would allow this to close needs to be ran out of town. Please, if you have a Veteran looking to refinance or purchase a home have them call me to at least keep the other company honest. I do it right the first time with the lowest fees, lowest rates and never any extra charges to ANYONE.
#iknowamortgageguy
