Never Refinance Your Mortgage Loan With a Bank

about...what is your source for the claim that banks are exempted from compliance with respa? and what is your source for the claim that banks mark-up their loans? and can you please give an example of such a mark-up?

i just really would like to know these things...and more, of course. i'm quite curious.

aboutyourmortgage

That was one of the most ridiculous posts I have seen in a while. We should remove your ability to post links....forever

there are a bunch more of these dubious diatribes

When aggregators buy loans from correspondent lenders, they pay a service release premium to those smaller lenders to release the servicing rights. The lender is thus delivering two assets to the market: 1) whole loans, and 2) mortgage servicing rights (MSR). MSR is the contractual obligations undertaken by one party to provide servicing for mortgage loans owned by another party, typically for a fee. When the largest players in the mortgage industry (the “Aggregators”) purchase agency-eligible mortgages, they “bifurcate” the asset by passing through the loan to the MBS market and stripping out the servicing and excess servicing for their own long term investment. The Servicing Released Premium (“SRP”) paid by the Aggregators to correspondents reflects their valuation of the MSR component of a given loan. Bank regulators have to approve the servicing value a bank assigns to this component of the mortgage asset.

stimulating

If these people are our future, I am going to drive over a cliff later this afternoon.

She has a point in the sense that mortgage bankers and banks are not required under RESPA to disclose the actual profit they make on a loan like a mortgage brokers does.

amen, eric