New FED rule elimintaing Yield Spread Premiums to Mortgage Brokers

Andrew Russell:

this is for brokers, not correspondants or retail...Lucky to be me...

You kidding?  Have you seen your avatar???

Easy pal...You clearly do not know how to judge a handsome devil when you see one...If you want to be on my retail team in January let me know...I will work something out... :)

My avatar may look like Stone Cold Steve Austin on a bad hair day, but yours looks like Jerry Garcia reincarnated on the golf course...

Lets hope all this hooplah doesn't go through and as my good ol' pal Mike Gannon says, "goodbye capitalism"

Andrew Russell:

this is for brokers, not correspondants or retail...Lucky to be me...

I suggest you read it again.  There is no difference here.  This is not just a new GFE.  This is a fundamental change in the way that every single LO in America is paid.  I'm guessing a bunch of Bankers (Fed Reserve Governors) got together with Acorn (Community groups) and said, let's shake things up a bit.  The fat cats on wall street aren't affected by this, but the LO at your local broker's office and at your local bank is about to have a "compensation meeting" with their supervisor that will not go well if this thing becomes rule.

Your choices will be "pay by the hour", or "flat rate".  If you are paid a percentage of the loan or bps, that will now be illegal.  WHAT THE HELL?  NAR - are you getting this, because the realtors are next. 

Just ridiculous stuff. Wouldn't the small broker shops be gone overnight if forced to pay wage? We couldn't do it, could you?

My company, McKenzie Funding, is signing on to be a sierra pacific branch. have you checked that out? closest fit to what makes sense vs. broker model i've seen. let me know if you want details. bottom line, we stay mckenzie funding, they have our fha license and compliance, accounting/payroll for $350 per MONTH 1-5employess or $500 for 6-10.

we maintain management and profit/loss center so good for owner to ditch lots of costs and liability..

we also now have way more lenders, as sierra is signed up with about 30so far, including provident and some key niche lenders like ing, suntrust for jumbo, guild mtg for manufactured fha,etc. also have wells. $400 extra fee to broker outside of sierra. they get 1st look at govies, skinny file ok if you know outside their guides they td and let you broker out. great benefits/401k,life,etc vs. my little shops options. we keep splits, processor comp, 2paydays month, etc all how we want it.

good to see derek with what looks to be a good company and not much downtime!

hope all is well,

mike in eugene

I believe you are incorrect.  Reread the section.  My bank nor any of my associate counterpart's banks are worried about this.  Why?  Because it affects brokers.  I am not a loan officer.  I am a mortgage banker.  We do not get YSP.  There is no mention of SRP in the passage. 

If you read the wording it says mortgage lenders can not pay brokers or loan officers ysp.  If you are a bank you are a mortgage lender.  If you are a lender it doesnt say that you cant charge higher rates or costs.  If they are saying that employees at banks that sell mortgages are loan officers and that the bank can not pay these individuals money based on a loan scenario than some other way will be figured out.  Whether you call it profit sharing or there are sliding scales implemented there will be a way around it.  At the end of the day I do not read anywhere that states that mortgage LENDERS will only be able to charge a flat fee.  What might happen is pricing systems such as MPS and NYLEX go away and rate sheets are brought back as a way to get around it.  At the end of the day while Obama is trying to destroy capitalism with his crony Timmy Geithner I do not think this will either pass or if it does it will not hurt banks.  I realize at the end of the day they are trying to protect the consumer, but all they will do is hurt them as they will have less places to turn to get a mortgage.  With no competition comes higher prices.  We shall see.

Let me see an avatar with your handsome face Gannon, you Beta Warrior!!!

Andrew is WRONG

 Andrew go read the federal reserve letter that is  open for comment, the Feds also note that "creditors" that is their term for Banks also are predisposed to using YSP for more profit (BTW all of us on this forum need to send our dispute to the Federal Reserve see post above) The Net branch won't save you if the Federal Reserve Board moves forward  Bankers were wrong about HVCC affecting them also, we need your voice to stop this regulatory nuclear option

CALL, WRITE, EMAIL DAILY YOUR CONGERESSMAN AND SENATORS

Rod

I don't know if anyone can be termed wrong yet since this is all just open for discussion until December.  After that there will be a 120 day window where it is tossed around.  Also this has come up many times over the last few years.  I know the Federal Reserve wants to protect their authority before the newly formed Consumer Protection Agency is formed, but this is a bit premature.  I agree with Rod (stewart) that everyone should write to whomever will listen.  My Vice President is at the mortgage bankers convention in California and apparently there is already 10,000 signatures.  I personally think it will be difficult to get by as you are killing capitalism.  Does this mean that Yankee Stadium can no longer charge more for a hot dog than another team?  Does this mean the local deli has to charge as much for a sandwich as the deli down the street?  All in all this is a complete abomination of the entire foundation of our country.  While I believe there will still be ways to navigate around this in some form or shape it wont be good.

Andrew Russell:

Easy pal...You clearly do not know how to judge a handsome devil when you see one...If you want to be on my retail team in January let me know...I will work something out... :)

 

My avatar may look like Stone Cold Steve Austin on a bad hair day, but yours looks like Jerry Garcia reincarnated on the golf course...

Nicely played!

But seriously---this won't be good for anyone....wholesale/retail....pretty soon, if allowed, there'll be a loan fee (as mentioned) cap.

I agree.  Take it out on the bankers and brokers that borrowers took bad loans.  What is next?  Car salesman can't make commission?  It shouldn't end at us, watch out realtors!!!  What about financial advisors?  Stock brokers?  What about our cable tv providers?  That is sure as heck inflated to high holy hell...

This would kill capitalism, so I agree with Mike.  I cannot see this happening.  There is always going to be a sect with insane ideas.  This shall pass.  There are too many players of too many facets of the banking industry that would stand to lose an inordinate amount of capital.