I recently read an article portraying how dirty the lending industry is based on the fact that there are fees associated with closing on a mortgage. Now I know first hand that there are some predatory lenders out there. I know that there are some unscrupulous people still lurking for there next victim operating within our industry, but the truth is that THEY ARE BEING WEEDED OUT FAST.
The real focus in the article that I read was on the fact that there is origination and or yield spread premium being collected on loans. Now there is a huge difference between gouging your clients unfairly and charging an honest fee for a job well done. It seems like insanity to me knowing how much work goes into each and every loan that there are people out there who are angry about the fact that we don't work for free. WE ARE PAID A PERCENTAGE OF YIELD SPREAD PREMIUM AND ORIGINATION FEE. This is how we make a living.
I have on several occasions read articles mentioning how a Realtor bashed a loan officers fee. I have never heard a single complaint about a Realtor's 6% commissions. Don't get me wrong; Realtors do a lot of hard work and they deserve what they earn. What baffles me are all of the people out there who think that MORTGAGE PROFESSIONALS SHOULD WORK FOR NOTHING IN RETURN.
I know personally that I work with the attorney's on both sides and our own, the Realtors on both sides, the underwriters, the processors, the title companies when needed, banks, appraisers, inspectors, not to mention THE MOST IMPORTANT PEOPLE INVOLVED IN THE TRANSACTION; THE BORROWER'S. Most designations within the real estate/mortgage lending industries do not deal with as many people as we do.
We are absolutely integral to the process of transferring real estate from one person to another in most cases. If someone has the cash to do a cash deal that may be a different story, but that is not very often. Most people who could do a cash deal prefer to take a mortgage as a way of leveraging their AVAILABLE LIQUID INCOME/CASH RESERVES.
I work very hard as I am sure that most of you do as well. I believe firmly that I am entitled to earn an honest living. I do not agree with the content of the article that I recently read. Now on the same token as everything that I've just said I also do not believe that it is right to charge people as much as possible. I believe that rate and fee should be a reflection of THE LAYERING OF RISK FACTORS AND THE AMOUNT OF WORK THAT IT TOOK TO GET DONE!
If you spend 3 months on a loan because there were a dozen tax liens to track down I think that an extra premium is not necessarily unfair. No one questions a mechanic, or a Realtor about what everything costs. Many service related industries DO NOT EVEN DISCLOSE THE FEE UNTIL THE WORK IS DONE.
I am not writing this post to bash anyone. I think that it is perfectly fine that Realtors earn a healthy commission when business is good. I believe that a mechanic should be paid after a hard days work. I just want to open up peoples eyes a little bit and let everyone know that NOT everyone in this industry is predatory and that we mortgage people put a lot of hard work and effort into what we do. WE DESERVE TO BE PAID LIKE PROFESSIONALS!
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