Hey y’all, the mortgage JUICE is going to flow today. Let me say in sitting with a set up team member and asking ops today about what is the most Whacked OUT things broker’s do to their loans, so we can avoid them… Two things came up, both center around FEE’s.
First and foremost, make sure you are OVER-DISCLOSING your fees. For example, in the appraisal area, put the cost of an appraisal and one re-inspection, in the credit area, put the cost of a credit report and the cost of one credit supplement. I would go to the length of actually rounding up title fees’ if I was disclosing. It’s easier to over-disclose and go down than the other way. It sets you as and LO up for success. TO under promise (setting worst case cost expectations up front) and allows you to OVER DELIVER (and in the end the costs are less).
Now here’s the biggest mistake I see others doing. When you are disclosing or having a lender disclose, make sure on a LENDER PAID LE, that the BROKER COMMISSION AMOUNT IS NOT ON THE LE> Some are just so used to disclosing their income and now with the new disclosures it actually levels the playing field for originators. YOU NO LONGER need to have your Broker fee on the LE unless you are going Borrower Paid.