Thanks to the housing bill passed on 7/30/08 we should see an end to the mortgage fraud and predatory lending that has plagued the country. Indeed, South Florida has had the highest amount of corruption in the mortgage industry.  Some mortgage brokers took advantage of buyers by charging outrageous fees and high pre-payment penalties. The state actually allowed felons to get their mortgage brokers licenses. Thank goodness those days are gone!

Thanks to the new bill passed into law on 7/30/09 and the changes in RESPA, the consumer protection act, these things will no longer happen.  

The new law will provide homebuyers more complete, accurate and understandable information about their mortgage.

This is intended to help the consumer to plan for a mortgage versus shopping for a mortgage.

Now mortgage brokers/planners will be required to:

Provide a good faith estimate GFE of costs when they meet with you. They will need to provide a mortgage plan. They should strongly suggest you check out the competition before you choose them. They can no longer accept an application fee.

Buyers can visit www.bankrate.com for daily updates regarding financing.  Please remember when checking bankrate that the rates being quoted assume the buyers have good credit, usually over a 700 credit score.

Please make sure you are working with a mortgage planner who is up to date and can explain the new laws and how they affect you.

If your mortgage broker/planner asks for more than $45.00 for a credit report at the initial meeting, run.  That is a red flag that they are not up to date and not conforming to the new laws.

When all is said and done, go with a mortgage planner who is willing to answer the following questions (for a complete list please email me at ellenbithell@remax.net):

SOME QUESTIONS FOR INTERVIEWING THE MORTGAGE PLANNER

1.      How long have you been initiating loans?

2.      How long have you been with this company?

3.      Do you work as a lender full time?

4.      What type of loan programs do you offer?

5.      What is the interest rate?

6.      When can I lock in? Will it cost me?

7.      Will you provide me with a good faith estimate and a letter of commitment?

8.      Can you tell me about the new $7500.00 credit for home buyers?

If your lender is not comfortable taking the time to educate you on the home buying process and is not conforming with the new laws, continue looking until you find someone that does.

I have been fortunate throughout the years to have established relationships with several mortgage planners, one of whom is Mark Cornwell of Mortgage Movers at  mscornwell@comcast.net.  He has years of experience and can help you find the mortgage program to best meet your needs.

It would be my pleasure to assist you in all of your South Florida Real Estate needs, from Miami to Fort Lauderdale, serving both Dade and Broward Counties; I am here to be of service.

ELLEN BITHELL

CRS, CERTIFIED REO SPECIALIST, HOUSING OPPORTUNITIES SPECIALIST

SELLING SOUTH FLORIDA