While certain mortgage process guidelines have backfired, (see HVCC); there are those that work to separate the professionals from the shysters.
We’re happy to report that the new good faith estimate guidelines will eliminate the old bait and switch techniques employed by unsavory lenders. These will help to put the “professional” back in mortgage professional because now everyone has to play fair and present to home mortgage borrowers a host of fees that cannot change.
However, in typical government fashion, we have the theoretical that makes sense on some levels (the weeding out of the bad apples), and the practical. In this case there is still no real provision for giving borrowers the bottom line on the good faith estimate. Bottom line, there is no bottom line. So while we appreciate the expulsion of rotten fruit, we tread cautiously as to whether or not to jump up and down on the thin ice of yet another tactic to “fix” what is broken in the mortgage process.
And at the end of the day, policies mandating ethical behavior are the very least a home buyer should expect from a mortgage broker in Tampa Bay; a reputation and a proven track record of careful assessment, due diligence, and finding the right mortgage product to suit the wants and needs of the borrower is just as critical a component in the equation.
While bottom feeders will always seek someone upon whom to graze, our hope is that dishonest business practices that have been allowed to fester in the marketplace by the Joe’s Refinance Shacks of the industry, will go the way of all poorly constructed huts, into the wind.