Some of the best lenders for purchasing commercial property with good credit
Subprime mortgages, almost nonexistent 10 years ago, accounted for more than 10 percent of all new home mortgages in 2004 and kept growing over the next 2 years until the mortgage meltdown; Lewin said of company Mortgage Loan Inspection, LLC. Measures in the mortgage industry had become increasingly dated as banks and other mortgage lenders developed a array of high-cost subprime mortgages for people who would have simply been rejected outright in the past on the basis of poor credit or inadequate income”.
In addition to paying much higher interest rates than ”prime” borrowers did with strong credit, subprime customers were often locked into their high interest mortgages for three to five years and forced to pay an enormous pre-payment penalties if they try to refinance into a more suitable mortgage based on their credit and financial situation.
Lewin said “that part of the gap could be explained by differences in the kinds of mortgages that people used and by differences among mortgage lenders and the commissions paid based on selling consumers higher interest rates”. Loan officers from every lending institution were rewarded directly by the lenders to sell exotic loan programs and higher interest rates to consumers which translated into enormous commissions for loan officers and huge profits for the banks. The plan went well until one day the house of cards came crashing down. It was bound to happen, the hand writing had already been written on the wall and everyone in the industry saw it coming, except for the public.
Corporate greed had taken over the mortgage industry where once stood good common sense underwriting guidelines that were now bring disregarded all in the name of profit. Fast forward to 2011, the government after watching the financial and mortgage meltdown finally stepped in and created an agency whose sole responsibility it is in overseeing the lending industry. They began their quest by completing a major overhaul of the mortgage industry first starting with the documents currently being used. They wanted more transparency with the ability for consumers to be able understand what they are signing before they do. They attempted to create a new set of mortgage disclosures that would be easier and far less confusing to consumers which has now back fired. What was once a form providing a line-by-line description of all the lender fees and closing costs in a mortgage had now become a nightmare for consumers to understand, even the loan officers, and some real estate attorneys. According to HUD, on page 2 box 1 on the newly designed Good Faith Estimate (GFE), all the lender fees were combined together into a single fee and cannot be itemized separately. Consumers today can no longer look over their (GFE) or Truth-and-Lending (TIL) statement and even answer one basic question – how much is the lender charging me in fees? Here is a list of just some of the fees that are grouped together and no longer provided in a line-by-line disclosure to consumers – the origination and broker fee, processing fee, credit report, underwriting fee, lender’s inspection fee, rate-lock fee, tax service fee, flood certification fee, administration fee, express postage fee, etc.. I reviewed the new 3 page GFE and noticed a disturbing detail missing; signature lines, where does a consumer and lender sign on this legal document? The previous GFE version at least had a line on the bottom of page where you could sign.
Mr. Lewin also pointed out to me that HUD’s new attempt making it easier for consumers to understand the fees and costs being charged by their lender has become a guessing game”. He also showed me the new mortgage shopping cart on the bottom of page 3 of the GFE which is supposed to be used by consumers to compare different GFE’s side-by-side with at least 3 different lenders, it’s designed to help consumers when they go out shopping different lenders.
HUD’s concept of taking a copy of the GFE form provided to them by the first lender and using it when comparing offers other lenders seems like sound advice, except for one minor detail. Only one problem, unless you actually apply for a mortgage, the lender does not have to provide you with a copy of a GFE for comparison. I did some calling to both a few local and national banks and found most banks are charging from $50.00 to as much as a $400.00 in a non-refundable upfront fee to get a copy of the GFE. Well that just puts off about 99% of potential borrowers out there without a GFE for shopping comparisons. What are they willing provide you with? A loan scenario worksheet, which really is not worth anything since it doesn’t represent any real guarantee of the costs or fees they are promising or any real value when you decide to compare lenders side-by-side.
The only way I was able to compare offers from 4 different lenders was when I thought I would put Mortgage Loan Inspection to the test. They even surprised me, I wasn’t even interested in getting a mortgage but I wanted to see how their program worked. They answered my questions, told me what I would need to get a mortgage, prepared me for meeting different lenders and even shared a few insider secrets about how the industry operates. They even went as far as performing an in-depth budget analysis showing me how much of a payment I could really afford and still live comfortably. They are the first of their kind company in the nation and hope to spread across the country before mid-April. They opened their doors in Mequon, Wisconsin in late 2007, since then, they have expanded their current operations into 12 States.
The backbone of the company is made up of former Senior Bank Executives with over 30 years in the mortgage industry, Underwriters, and Wholesale Account Representatives. Lewin said, “It doesn’t matter what your educational back ground is, when it comes to getting a mortgage loan, unless you are working in the industry everyday there is no way you would be able to fully understand the information and changes daily that his company provides to consumers. He says they even show consumers how to negotiate with lenders for the lowest interest rate and best terms available, saving their clients hundreds if not thousands of dollars in lender fees, finance charges and closing costs. They charge a low flat fee that is 100% refundable if their client is not able to get financing on their home, this way he said, “There is absolutely no reason or no risk to stop a consumer from using their services.
Lewin said, “The easiest way to describe their service is – “We are like a Home Inspection, but for a Mortgage”.
Q. How many companies are out there like yours?
A. None, we are the original company that came up with the process and secured the name with the
USPTO and had our program copy written.
Q. Why don’t you have any competition?
A. Because of registering the names of Mortgage Loan Inspection® and Mortgage Inspection® plus all
the copyrights and the price we have placed on our service.
Q. How long have you been in business?
A. 3 Years
Q. How did you begin? What was your driving force?
A. We began development starting in late 2004 and began test marketing the program in September of
2007. Understanding what was taking place in the mortgage industry and seeing consumers being
mislead by unethical lenders was the driving force behind the creation of the company. We
wanted to stop predatory lending and the practices of Loan Officers around the country were using
with consumers. It was also about the loan program too. Consumers never had any idea what they
where signing up for or even what type of loan they were even getting. The worst part was seeing the
last minute changes at the closing table where the rates were higher than first quoted and the fees had
tripled. It was wrong and the public needed to be educated about how the industry operates.
Q. What about sites like lending tree that offers client’s multiple loan quotes from mortgage companies?
A. Lending Tree is no longer a loan comparison site where lender’s bid for giving the client’s the best
rate, terms, etc. anymore. They are now a full service retail lender using the ploy or unethical lending
practice that the site has not changed their mission. In fact, they now use a graph to compare deal you
are getting and show their lender is the best not telling the consumers they are the lender as
demonstrated in their new Advertisings campaign. They try to copy what we do but truly deceive
consumers in the process where we are an unbiased third party vendor working for the best interests of
our clients. (See News Release Attached)
Q. How much does the service cost?
A. Only $295.00 which is refundable if the client’s loan does not close or listed on the HUD.
Q. Is there a guarantee of using your service that a client will get loan?
A. No, it all depends on the consumer’s credit scores and ability (Money Saved) to purchase a home.
Q. What about if they have bad credit?
A. We work with your client to help them clean up their credit legally for free. The same as any consumer
can now go on line and object to incorrect information in their file or show them how to reestablish
their credit rating in a year. Once their credit has been cleaned up and they can now qualify for a
mortgage based on the credit score guidelines we refer them back to the original company that referred
them to us. It does not matter if it takes a month or 2 years, you will always get your client back
regardless.
Q. Have you ever had a mortgage broker try to take advantage of a client and were you able to stop them
before it happened?
A. No. Since the loan officers are aware their client is working with a service looking out for their best
Interests, loan officers everywhere have a tendency to be very cooperative.
Q. Real Estate Agents are accustom to their own Loan Officers, why they would want to have their clients
use your service?
A Trust that they are looking out for their clients best interest plus we are able to get a deal closed in a
faster period of time. Beginning the 1st of April 2011 the Mortgage Lender’s compensation will
change saving overhead fees.
Q. How do you feel you can make a difference in the sales process?
A. Knowing the Real Estate agent has a client who has complete loan approval before showing them a
home will save them time and money. Additionally, knowing that when they make the offer to the
seller they can say their client have conditional loan approval.
Q. How long does it take for you to assist a client with putting together their entire loan package?
A. Generally no longer than 3 days from start to finish.
Q. Do you explain the difference between loan programs? The Pros and Cons?
A. No we do not. That is the job of the licensed loan officer to discuss which program best suit their
clients’ needs and current financial situation.
Q. Aren’t you doing the Loan Officers job?
A. No, not in any way. We provide education, guidance and support.
Q. What makes you better than a loan officer when helping a client?
A. Giving the client an unbiased opinion.
Q. How will we benefit by using your service?
A. Smoother transactions, on time closings, no surprises at the closing table and more Leads.
Q. How many new deals can we expect to gain by using your service?
A. We have seen increases by as much as 30% of Open House Client retention and new referrals.
Q. What does your Client Marketing and Services Division do?
A. We contact the clients after the closing to see if they were happy with our service and at that time our
marketing sales representatives will solicit the clients for both new home buyers, sellers and people
who want to refinance their present home.
Q. How can we get more referrals for the Real Estate Company and the Bank?
A. Using our service sends a strong message to the clients letting them know you really care about their
wellbeing. This in turn will lead to more quality referrals for both divisions.
Q. We are required to hand out business cards of multiple Mortgage Brokers and Home Inspectors. Since
you are the only type of business in the country like yours then how can we knowingly only handout
your card?
A. There are 2 ways in doing this. First by having a Business Affiliation Agreement (Appendix D to 3500
Affiliated Business Disclosure Statement.) or by signing up your company up as a reseller of our
services on a regional basis.
Q. Have you ever had a deal not close when it was approved and already at the closing table?
A. No because the clients were prepared for the closing and knew ahead of time that the interest rate
they were promised and the terms of closing did not change.
Q. Are you attorneys?
A. No. We do not provide any legal advice. If a client wishes to have legal representation we always
highly recommend it.
Q. Do you provide Legal advice?
A. No. Only attorneys can provide clients with legal advice or representation.
Q. Do you provide Financial Advice?
A. No we do not. We do have a budget analysis program which is used for educational purposes.
This program is designed to help consumers understand their current outgoing expenses with both a
proposed mortgage payment and their current mortgage payment or rent payment. It helps to show
them how their current financial situation will change.
Q. Is your Agency required to be licensed?
A. No. Since we do not provide any legal or financial services or act as a loan officer in any manner we
are not required to have license to do business in any state. We have contacted numerous Banking
Divisions such as the State of New York’s Department of Banking, which has the toughest rules and
regulations, and asked for permission to do business in their state and advised us as long as we are not
acting as a loan officer in any manner; the State of New York welcomed us and stated “Where were
we 5 years ago before we got into all this mess”.
Q. Have you ever had any complaints filed against MLI on the BBB or Attorney Generals Offices?
A. No.
Q. What do you advise the client about in purchasing or refinancing a home?
A. The entire mortgage process and what information will be required by the lender for quick loan
approval and a smooth loan closing without any surprises.
Q. Do you help the clients with filling out the Application Documents?
A. No, that is the job and responsibility of the licensed loan officer. We just help the client prepare the
package of information the Loan officer is going to need to process the loan.
Q. Do you refer clients directly to lenders?
A. No, we use an unbiased opinion since each lender offers the exact same loan programs. A lender who
is willing to put their offer in writing, provide the closing costs amount and lock the loan at the best
rate for their credit rating is the one we recommend.
Q. Do you have any exclusive business relationships with any lenders in the US?
A. No
Q. How long does it take to process a client’s file?
A. Generally 3 days
Q. Do you come to the closings?
A. No
Q. What documents do you review before closing?
A. The Mortgage Note for the Interest Rate, HUD-1 or HUD-1 A for total Closing Costs and prepare a
complete report and provide it to the consumer.
Q. Is the client required to pay the fee for your services up front?
A. No, it can be paid at closing on the HUD-1 or by either the client or listing Agent or as part of the
sellers closing cost concession. It can also be paid for by credit card.
Q. How many Loan Inspectors do you have working for you at the present time?
A. 25 with 20 more ready to join in at any time.
Q. How do plan to handle a large influx of new business being sent your way?
A. We have over 1500 unemployed former underwriters, processors and Account Representatives in our
area alone looking for full work.
Q. How does your referral program work?
A. At open Houses in gain new clients, soliciting after the closing, phone calls and off the internet site.
Q. How many years has the management staff had in the mortgage and Real Estate Industry?
A. Over 70 years of combined experience.
Q. What type of problems have you run in to in the past dealing with Real estate agents or Mortgage
Lenders?
A. Communication problems between the Realtor and Lender, not with us.
Q. How involved do you get in the mortgage transaction?
A. Only with preparing the client for the mortgage process and making sure what was promised to them
shows up at the closing table.
Q. How hard is the program to sell to clients?
A. Very easy. The program virtually sells itself since it makes sense in today’s market place.
Q. How much training is needed by our agents or loan officers to sell your product?
A. Less than 4 hours but in most cases, we are able to teach it in less than 2 hours.
Q. Do you pay any referral fees to the Real Estate Agent?
A. We cannot pay a real Estate Agent directly. We are only able to pay the Broker.
Q. Can the Real Estate Broker be paid a fee for referring business to your company?
A. Yes. Provided they have had their clients sign an Affiliated Business Agreement.
Q. Are there any other legal disclosures that a client has to sign concerning an ABA?
A. No.
Q. How quickly can this program be implemented into our present business model?
A. In less than 2 weeks
Q. Is there any contract that needs to be signed between MLI and our Company?
A. Yes, an Independent Contractor Agreement
Q. How can we get paid a referral fee if we can accept a fee for selling Home warranties?
A. The business would have an Affiliated Business Agreement and ICA
Q. How many years is the contract good for?
A. One year. The IRS requires that a new contact must be signed once a year to meet the Independent
Contactor Status.
Q. Will any other Real Estate companies be able to sell your product in our territory?
A. No
Q. Is your contract a Franchised or Distributorship contract with guarantees?
A. No
Q. How long will it take to train our entire staff and agents on your program in the states we presently
doing business in at the present time?
A. It will have to be done office by office or by one large online web seminar for the managers who in
turn teach their Agents or we can personally assist in training each office and Agent.
Q. If we expand in to other states will we be able to sell your product in those states also?
A. Yes
Q. Given the new Federal Reserve Board’s new rules and guidelines if they change any of the rules will that affect the way you are able to perform business?
A. No
Q. Why is this program so important for our company to sell?
A. You would have the opportunity to take the lead in customer service and care in your areas
Q. Why did Century 21, Better Homes and Gardens, not signed on with your program yet?
A. We have not approached them
Q. We prefer to see how other companies do with your product before committing ourselves?
A. we have referral letters from other real Estate companies and Lenders who have worked with us and
not one complaint, only praise.
Q. What obligations do you have to your client and the companies you work with?
A. To give a straight forward unbiased opinion to them.
Q. If we sign on are we committed for a long period of time with your company?
A. As long as you want. If you are looking for a longer term or condition that can be discussed.
Q. What Marketing materials will you provide us to market your product to our clients?
A. Brochures, benefit sheets and business cards.
Q. How will we know you are not taking referrals from us and giving them to other Realtors or Lenders?
A. Our books are always open. We do not do business in that fashion. We still believe in loyalty.
Q. The Inspectors, what qualifications do they have prior to working for your company?
A. Only former Underwriters, Processors, Wholesale Account Representatives.
Q. Are there any costs to our company to doing business with you?
A. None
Q. What do you believe is a reasonable time table to have your program up and running in each of our
offices?
A. 2 to 4 weeks
Q. What if an office is not interested is using the program? Does this affect us?
A. Because some of your locations are franchised and some company owned, it would be the decision of
the broker in charge. It does not affect our relationship if every location did not come on board
but like any good business we would like the opportunity to work with all of them.
The Federal Reserve Board’s new rules and guidelines will take effect April, 2011 and change the way the Mortgage and Real Estate Industry have been operating up until this point. Mortgage Loan Inspection® has planned ahead for the new regulations by taking a proactive approach to understanding how it will affect your current marketing model and financial bottom line. Our program is a highly innovative service that is unique to home buyers by offering them personal mortgage education, preparing them for the mortgage application process, and providing them with one-on-one support and guidance throughout the entire mortgage process. Additionally, MLI provides assistance to both Mortgage Loan Officers and Realtors®.
Our goal is to provide your clients with a professional, stress free transaction without any surprises at the closing table. This service should translate into more quality referrals and new loans for the loan officer and new sales for the real estate agent.
MLI’s program can dramatically increase the amount of new loan applications your business is currently receiving while meeting all of HUD’s guidelines and rules as a third party provider (see RESPA P.L. 93-533.24 CFR Part 3500 of 1993). Our service is classified in the same category of services that are provided by a Home Inspector, Home Warranty, or any outside third party provider. Mortgage Loan Inspection® does not accept any referral fees, kickbacks, or gifts of any kind from either a Realtor® or a Mortgage Lender.
HUD’s other Requirements concerning steering and counseling:
HUD Statement of Policy 1999-1, Section C.
In order to determine HUD’s requirements that meaningful counseling rather than steering has taken place, will be satisfied only if the following also occur:
Counseling gave the borrower the opportunity to consider products from at least three different lenders;
The entity performing the counseling would receive the same compensation regardless of which lender’s products were ultimately selected; and
Any payment made for the ‘counseling-type’ services is reasonably related to the services performed and not based on the amount of loan business referred to a particular lender.”
Mortgage Loan Inspection® meets all RESPA and HUD Regulations and Guidelines in its daily operations and consumer practices.
Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2010
Mortgage Loan Inspection® also meets the requirements of Article 6 set forth by the National Association of Realtors Code of Ethics. Mortgage Loan Inspection® does not pay referral fees or offer any gifts in return to Real Estate Agents for referring a client to MLI. Mortgage Loan Inspection® is able to pay a referral fee to the Real Estate Broker provided it has been properly disclosed to the client with an Appendix d to Part 3500 Affiliated Business Disclosure Statement Format.
Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm may receive as a direct result of such recommendation. (Amended 1/99)
• Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
***(Article 6 requires that REALTORS® disclose any financial benefit they receive as a result of a
recommendation of a real estate product or service.)
Benefits your business and your service providers can realize by using our service.
A competitive advantage over any other Real Estate Company or Mortgage Lender when it comes to offering a potential client a full service corporation that can address every mortgage procedure of the Real Estate transaction.
Your business should capture considerably more home sale loans as a result of the new mortgage shopping process set forth by the Federal Reserve Board. Every consumer should shop at least 3 different lenders before choosing a lender. Mortgage Loan Inspection sees the benefits to the client and believes that your business should have the opportunity to review the other offers, and determine if they are able to offer lower closing costs and quicker turn time.
Our program can dramatically assist the Loan Officers’ overall productivity, since the borrowers will already have put together the required documents and financial information, prior to applying for a mortgage. This will save them time and give them the ability to process more clients.
Your business can provide their borrowers quicker turnaround and approval times when using MLI’s program. (Average closing times are less than 3 weeks from start to finish.)
No matter which compensation package your business chooses it will help to increase your bottom line! (Compensation on the backend only or up front points.)
It gives your Loan Officers more time to solicit and acquire new business lead sources.
Never submit an incomplete loan package to underwriting again.
If credit is an issue for your client, we work them at no charge to help them straighten out their credit. Once their credit scores have improved we have them return to the original loan officer that was working with them to now get qualified to purchase or refinance a new home.
We can help you Increase the amount of new Mortgage Loan referrals you can receive through our Marketing and Client Services Division for FREE! Once a loan closes our CSD contacts the client and asks them how they were treated and would they refer a friend to the Real Estate Company or Bank. Once we get a new referral we promptly contact the Real Estate Agent and Loan Officer with the new referral.
One of most creative programs introduced in the last 25 years to the mortgage industry since the creation of Home Inspectors.
We take the fear out of financing a home for consumers.
MORTGAGE LOAN INSPECTION®
Consumer Protection Agency
