The financial reform bill has its supporters and those who would like to drive icepicks through the hearts of our legislators. I, for one, am totally in love with the idea that a mortgage lender should actually qualify a borrower -- you know, verify the borrower's income, credit rating and employment. Just like the good old days before everything went to hell in a hand basket.
Not everybody agrees with this premise. And there are other parts of that financial bill that tick off people. One of the bigger changes that have mortgage brokers up in arms is the elimination of the YSP. How they ever got away with that practice for so long is beyond me. "Buuutt," mortgage brokers spit, "If borrowers were happy with the rate, what the hey?" Oh, stuff a sock in it.
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
You Know – Has anyone ever consider that 6 to 7 % commission on a sale is highway robbery???
I was working with a realtor just this week – had a listing, got the seller to do Lease Purchase – my borrowers pay down earnest money – and then the listing realtor decided to have my borrowers sign a piece of paper saying that he could borrower their down payment towards there loan so he could get his commission early. Why is this guy so special that he can get his commission before the transaction consumes? Isn’t this illegal – it definitely doesn’t go with your Realtor Code of Ethics!
Just keep in mind that the mess that we’re all in – didn’t stem from the mortgage industry – I think everyone involved in the housing industry contributed – all the way up to our great government.
I am wondering why you care how much your agent is paid when you aren’t the one paying the commission?
Most listing agreements say the listing agent has earned the commission when a buyer and seller sign the contract. The transaction doesn’t have to close in order for the agent to be entitled to the commission.