Mortgage laws changed since Mortgage Rip-offs and Money Savers was published.
Should you wish to read the new TILA-RESPA laws, here is the link:
Otherwise, here are the 5 most pertinent changes since the time my book was released:
1) There is no more Good Faith Estimate. It has been replaced by the Fees Worksheet (or similar name). Each lender can title it what they want, but it is the same info as on the GFE but with a different title on top. We are no longer allowed to call it a GFE. (Thanks government, that makes no sense!)
2) The new estimate for after you have made a full application is called the Loan Estimate. It requires a credit report pull, so ask for a Fees Worksheet when you are shopping for your lender. You will receive a LE from your chosen lender within 3 days of making application, per law.
3) No longer do you need to ask for the guarantee that lender fees will not change at closing, because now that is law. Lender fees cannot change by more than 10%. It’s almost as if the lawmakers read my book! (And maybe some did, who knows.)
4) It is illegal to add a junk fee at closing, a rip-off that used to happen all the time prior to the new laws.
5) Lenders cannot negotiate special deals for individuals. The new law has taken away your right to negotiate fees or a special interest rate. Lenders must charge all borrowers (with the same credit/risk factor) the same cost. Not even a son, daughter, or mother of a loan officer can get “family pricing.” Everyone pays the same. So if you think a particular lender is too expensive, you must go to a different lender. You cannot bargain with the loan officer.
NEEDLESS, NONSENSE JUNK FEES
The biggest JUNK FEE perpetrators nowadays are escrow companies. Pick a good one and put it on your Purchase Agreement, because honestly, the selling agents don’t care and often choose the worst and most expensive escrow settlement closers on the planet! Especially in California!! Pick a good national one like First American Title and Escrow or Old Republic Title and Escrow, and then you’ll be fine. If you are in an attorney state like New York, then you choose an attorney instead of an escrow company.
Most everything else in the book is still applicable.
For a good mortgage broker in your area, you can go here and type in your zip code, then open the drop down on the top right to narrow the miles down to 25. You can read broker profiles and choose one that looks good to you.
The site is owned by United Wholesale Mortgage, my favorite wholesale lender.
I am not taking new loan applications at this time.
Remember, a mortgage broker has a fiduciary responsibility to look out for YOUR best financial interests; whereas, a bank or credit union does not have that legal responsibility and can look own for THEIR OWN best interests