FL MORTGAGE BROKER vs. Banks

[Account Closed]

Over the last 2 yrs. it has gotten easier and easier for Mortgage Brokers to take deals away from banks.

Kinda feels like being Michael Jordan, back in his prime, walking onto a basketball court with a bunch of junior high school players and having the ability to completely dominate!

Amazing how the Dodd Frank Act was designed to harm and cripple the Mortgage Broker, but instead has supercharged Mortgage Brokers, giving them an advantage over banks.

Oh sure, the 820 score, 25yrs on the job, W-2 employee borrower putting 30% down on a 400k primary residence, who wants a 15yr fixed rate loan is a battle, but those are far an few between these days.

But if a borrower wants creative financing with minimum down and out of pocket and/or is Self Employed or has had credit issues or has other issues that don't fit these Fannie Mae guidelines:

SECTION B3-3      page 354       Income

SECTION B3-3.2  page 406       Self-Employment Income

SECTION B3-4    page 450        Assets Assessment

Then it's hellooo Mortgage Broker!

This is so typical of what Mortgage Brokers hear these days

..."Yes, we're self-employed and have been approved with our Bank."  

Okay, have you submitted the last 2 yrs Business and Personal Tax Returns to your bank and have you been issued a Commitment Letter? 

..."No, but we're not worried about that as we make plenty of money and have 800 scores."

Yeah, right!  You keep believing you're "approved" with your bank, right up until a week before closing when they turn you down cold and you then have to scramble to locate a Mortgage Broker to step in and save the day!

Then all that..."do you charge pointssss?" and "what's your rate?" goes out the door and turns into..."Please help us, our bank turned us down, our closing is in a week and we're going to lose the house and our deposit, can you get us done?