In a recent closing transaction the loan broker "earned" the lordly sum of over $21K . It turns out that his fee for brokering the loan was actually in excess of 4.5% of the loan amount. SERIOUSLY!!
Did I not read that brokers could no longer charge yield spread premiums? Yes, I did. But, as it turns out they are no longer called yield spread premiums, now they are called discounts. And because of the convuluted way in which the current HUD-1 discloses these fees being paid to broker, the buyer is totally unaware of the fact that the lender is still "kicking back" a fee to the loan broker.
I am tired of seeing the consuming public being misled in this way.
Sadly, unless I want to spend endless hours that I don't have to force an audit and review of this loan broker's methods they will continue to get away with this shady business practice. It's just so WRONG!
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