Wednesday, April 6, 2011

Loan officer compensation changes are here!

For those of you that may have seen the e mail I sent out this morning, today marks an historic change in the mortgage world.  All loan officers (and that includes originators at banks) are working under a new set of rules.  We do not have all the data in yet because it will take some time to reasearch rates at other insitiutions, but there are a few definitives that we know of:

1.  Loan officers can no longer make more money by giving a higher interest rate.
2.  As the law stands now, NO OTHER BROKER can offer a lower rate than my company at Citimortgage and Wells Fargo.  These are the 2 banks that handle the bulk of conforming loans through the wholesale channel.
3.  Loan officers can no longer give back part of their commission to cover any of the borrowers costs.

Stay tuned for more information that you can use.......

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