NAMB, Harvard Professor Dueling Over Op Ed Column

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Robert — Wed, 21 Nov 2007 13:00:00 GMT

It is unfortunate that an institute like Harvard is also put on the line by incompetent educators. One would expect an indication of a certain amount of research on the subject by the author. Is it not interesting that she quotes a Fannie Mae vice president about ysp. Why not state the name so we can verify the source? May be she herself received benefits from writting this article? Nobody else would make such inaccurate statements.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

SCOTT — Fri, 26 Oct 2007 11:00:00 GMT

Unfortunately there was invasion of uneducated, greedy loan originators when the housing market boomed in 2004 and 2005. Consumers were blinded by the prospect of rapid appreciation and didn't pay attention to the potential long term commitment of a mortgage. Any one off the street could originate a loan. The slow down of the housing market has chased the rotten apples from business. Her comments are outdated and ignorant. In today's tight mortgage market, a broker's value is without limitation.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

JD Rawcliffe, Esq. — Fri, 19 Oct 2007 11:00:00 GMT

I didn't realize that Harvard Law had such ignorant professors!

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Anonymous — Thu, 18 Oct 2007 11:00:00 GMT

I find it hard to believe that after 30 years in the mortgage industry Bob S. thinks lawyers are the unscruplous ones? I have investigated mortgage fraud for the last 11 years, and 2 out of three cases I see are broker related, not borrower, not attorney.... Ask anyone who works mortgage fraud in this industry as to who initiates the fraud and see what answers you get.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

CTAN — Thu, 18 Oct 2007 11:00:00 GMT

I think those who are upset about YSP being paid to a broker by a lender really dont understand how little a rate needs to be increased for the broker to be paid. I'm looking at todays rates with a lender I use often and I can offer a rate of 6.125 with the borrower paying 1 point up front or I can offer 6.375 with no point. Its the borrowers choice, you can do 6.25 and pay a 1/2 of a point for all I care its a better deal than you can get at your bank. This professor Warren chick is a fool

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Roland — Thu, 18 Oct 2007 11:00:00 GMT

It upsets me to see a story with so much inaccurate information published. While mortgage fraud is a concern and should be prosecuted, YSP is legitimate compensation that is FULLY disclosed to the borrower upfront on the GFE and at closing. It is a tool to reduce costs that would otherwise be born by the borrower and is already regulated and limited with other fees. Mortgage brokers receive more regulation, licensing, education and provide greater disclosures than required by most banks.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Natalie — Wed, 17 Oct 2007 11:00:00 GMT

The buyers were threatened by the builders with their large deposits and thrown into crazy loans. Once the housing market started to faulter, the builders who long since made their money through the sale of the home AND the mortgage could afford to dump prices sometimes up to $100,000.00. What did this do to the others who purchase and then were transferred a year later, needless to say all the other homes in the area. The trickle down affect has been horrible.

Take a look at the subdivisions where new homes have closed in the last 2 years. How many of these are builder financed, now take a closer look? How many of those builder financed homes are in foreclosure? The builders have a very strong lobby because the employ so many people. Is this the reason this is not being looked at closer?

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Natalie — Wed, 17 Oct 2007 11:00:00 GMT

I have listened for months about mortgage brokers and banks actually being the culprits of the housing industry upset. Why has no one said anything about the builders who, have their own mortgage companies. Took great advantage of the housing boom, future priced homes they were selling. Taking deposits and offering financing terms at the time of contracts that were not what was presented to the buyers prior to closing. continued...

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Wade — Wed, 17 Oct 2007 11:00:00 GMT

There is no way a broker would stear someone who qualifies for a prime loan to a subprime loan. Prime lenders pay much more YSP than subprime lenders and that's the way it's been for many years...at least in my state. If greed is the motivation, I'd put the borrower in a Prime loan any day. Make $750 to give someone a prime 6.875% rate or get $375 to give someone a sup-prime 10.875% rate? No brainer!

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Matt — Wed, 17 Oct 2007 11:00:00 GMT

I work at a title company and often times the YSP is the only way a broker can get paid, many borrowers can't afford to pay a dime in upfront fees. The broker sometimes pays all the fees from the YSP. We have closed loans that made only $86 net profit to the broker. Is that greed? I think it was charity.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Arthur dArrigo — Wed, 17 Oct 2007 11:00:00 GMT

YSP is symptomatic of larger problems within the RE/mortgage lending industry. And clearly, a vast majority of the brokers responding to this article don't get it. If you are in a fee for service business that fee should be borne by the party paying for the service. YSP muddles the clarity of the service and calls into question who the broker serves. Making loans where buyers closing costs are paid out of YSP is in many cases a fraud against the lender not charity. All parties share blame.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Rex Lawler — Wed, 17 Oct 2007 11:00:00 GMT

Those that can...do, those that can't...teach. And those that can't teach write op/ed pieces for major newpapers looking to draw attention to themselves. Shame on Ms. Warren!!

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

andy — Tue, 16 Oct 2007 11:00:00 GMT

Professor Warrens was right on the money. The loud din from the mortgage hacks only fortifies my low opinion of that crowd. I dont think she went far enough though. Its not just the former used car salesman mortgage brokers that are at fault. The big box banks are just as bad because they indeed are the ring leaders in this scam.

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Anonymous LO — Mon, 15 Oct 2007 11:00:00 GMT

Wow... Even if I max out up front points on the front, maximize my YSP to the legal limit on a $417,000 loan and divide my commission split of that by the hours of work I've done for the customer, then I think I end up somewhere in the $125 per hour range. Fair money if your saving $500 per month on your new loan. Now let's compare $125 p/hour to my last retainer agreement for an attorney which was $300 p/hour. Oh yeah, I only charge fees if I succeed for them, not fail...So who's the real crook?

RE:NAMB, Harvard Professor Dueling Over Op Ed Column

Bob S — Fri, 12 Oct 2007 11:00:00 GMT

As a 30 year veteran of the mortgage industry, the only unscrupulous people tied to our business are the lawyers, many of which are taught by this person, to find ways to sue legitimate companies on technicalities and take millions of dollars in fee's. How about you attorneys taking 1% on what you win in litigation, instead of the 30-50% you actually take. It's like "the pot calling the kettle black".