Click the post title above to watch today’s video! Catch all your real estate news and mortgage news with Frank Garay and Brian Stevens here at www.TBWSDailyShow.com!
You guys are SPOT ON!!! You need to get ahold of FOX News…. They need to take a few of your episodes and make a “Special Report” out of it!!!
Keep up the great work….Telling it like is is and should be!!!
Can you guys do a show on how the TIL disclosure has been “regulated” into a lie – EX: when a borrowers rate is 4.25% and they have no closing costs because they recieved YSP to cover all of them then the APR should be 4.25% and not be taking into account what YSP or comp was paid to the LO etc. as this is a gross misrepresentation to the borrower as to the actual cost of credit – which is what it was meant to be.
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This is all done by design, to get the independent brokers/bankers out of the business so the TBTF banks get it all. Hell, the banking lobby is the one who writes the legislation (Dodd/Frank, etc.) – members of congress are just too stupid, lazy, and (more importantly) bought off to do anything about it. Since the genie of LO Comp is already out of the bottle, the industry is toast IMHO. All the protestations of the inconsequential trade groups/lobbies are just whistling in the graveyard.
Great show! I’ll take FLAT all day long… and I’m not talking about compensation!!!
Now are you beggining to see the pattern? Banks make more money by using AMCs. Banks make more money by limiting LO comp. All of this started with Cuomo’s HVCC and this administration. It was far too daunting a task to separate the bad appraisers and LOs from the good ones with the regulations that were in place. All the while making themselves look like heros. Can you imagine another term with these people?
From the start of this “reform” I have always believed it was only to help the banks. Banks have never wanted Loan Officers who made six figures. And the bust has given them the opportunity to do want they have always wanted, pay L.O.’s and all who participate in the loan process less.
A loan closing for 100,000 6 years ago that made 3 points, still makes the same 3 points today. The difference is the loan officer is not allowed to share in the profits of the loan they generated. And the difference the L.O. used to receive goes to the bank.
Competitive market forces, forced the banks to pay competitive commissions, but with commissions now limited by law, those market forces that drove L.O. comp have now been removed. Banks now pay less for the same work provided by the whole loan process and make more money so they can continue to overpay their top management and executive officers.
The free market for competitive pay has been castrated!
First Frank and Brian, a crapee loan is not only the risky feature but it is a loan were as MLO/BANK/CORRES over charges a customers in fee or rate and yes it happens in todays world. Jay, exactly, the banks and corres made the choice the screw thier MLO’s . Pre comp change I charged roughly upto 2pts (ysp or Org) and I made 65% split…today, the company i worked for set charges at 3-3.5% and i made up to 105 bps with tier closings. basicly the compensation flipped Banks and Corres now make the 65% and MLO now make 35%…….their answer, go get more closings/deals….my answer go pound sand!! …the banks and Corres never let a good crisis go to waste. if you think for one secound the trips to DC and room full of CEO’s and Lawyers for Banks and Corres are thinking of thier MLO….yeah right they are discussing how can they profit on the backs of thier MLO’s. FUBAR!
I get your point Frank and Brian.
However, I do object to how you are portraying/using the woman loan officer. Certainly slams our credibility! Shame on you ladies for giving the right wing conservatives more reasons to rule our bodies and say that we can’t make important decisions! Yes, I get it was all in fun…but it was still unnecessary. I see who you to cater to…men. Can’t we have fun without degrading the many creditable loan officers?
Maria – Get a life.
LOL! What happened to the white shirts. Why grey?
No one was “objectified” here. The shirt idea was actually MY idea! I am not any less credible today than I was yesterday. I really am not one to get biblical but your response seems to be a bit “stone thrower” response. It was all in good fun and the real you are really missing the point… we are taking a very important issue and using a bit of humor to help get a point across!
I have no problem having a little fun with our videos as I am quite secure (as I know Shannon is as well) with my intelligence.
Have a wonderful day!
Wow, we wore full on work out outfits and didn’t even get them wet but still got slammed. Nobody commented on my fancy ballet moves. I am super bummed!
Couldn’t we have some men for a change?
“Can’t we have fun without degrading the many creditable loan officers?”
Good thing about America is that we have the freedom to say what we want and as a bra burning, leg and arm pit hair growing, tree hugging, man hating, RAGING CRAZY liberal.. you have a right just as we all do to run your FAT mouth and make our industry look bad.
Way to take the fun out of it. It is not like we don’t have enough tough issues to work through on a daily basis we need shit like you to rain on our parade.
FLOW ON LADIES~!
Oh.. and no I am not a hard core right wing conservative either!
Have you all forgotten about the ‘Borrower Paid’ option? 30% of the loans I close are borrower paid. And as to small loans not making you any money, set your minimum LP comp at a level to justify your taking the loan. Mine is $1500. So on that $60,000 loan, you make 2.5%. If you have a client with 4 loans and can’t figure out how to sell him on your worth in getting them done on time, to his/her liking, and justify your fee, you’re in the wrong business.
If you’re going to say ‘some loans are tougher than others’ to justify your gripe, get better clients. I don’t take in loans that have a 50/50 shot at closing. Yes, I do FHA’s, but if I’m going to have to jump through my own butt, settleing for $7 an hour, I’ll refer it to another Broker who loves that stuff. She’ll tell them she’s going to get paid all the money to get it closed. Everybody wins. After all, I miss out on the $7, but get to spend some time in the pool with my wife and a nifty margarita.
Pretty short sited view of the world. Maybe the CFPB will tell you you’re only worth $7 an hour next. The point is it’s an infringement on your rights. Government price fixing without it technically being price fixing. How can BOA charge a higher rate for a $75,000 loan but a broker cannot? THAT is wrong for the consumer and business.
I agree that we all banks, lenders, wholesalers, correspondents, brokers, etc. should be able to charge appropriately so we are not fee stricken from providing our services to the smaller loan clients.
Without free market the consumer gets railroaded into a corner and allowed to be mishandled in however way the bank sees fit.
problem I have is even with the lender comp plan now I have lost many deals. I charge 3.75% due to so many loans here in central florida avg 60-75k. hard to make a living. We are a direct lender, so I try to get most srp on back, but many investor loans, I cannot do or even conv. loans due to I am priced out of the market, but would normally only charge a a pt or so..All this regulation on the industry where the problem is NOT, has hurt my income, casued me to stop paying my credit cards, house in foreclosure, and unable to spend money to help the economy grow., I have gone from 225k down to 75k per year.. All the regulation is killed my living and way of life.. “Can anybody get right people in DC who have a brain, to SEE the problem?”"”"
Well there are a lot of Ideas commented here but wouldn’t it be easier just to vote out these idiot representatives we put in office?…for starters.
Fact: Real Estate is Politics and the Realtors and Lenders have very weak representation through their alphabet agencies.
Yes we do need to vote them out.
Vote ‘em out and replace with what? No matter who is in office the bankers are going to continue trekking to Washington. We need to stop lobbyists. As much as I want to vote them out.I really do not think it will matter in the end.
file suit under restraint of trade, anti-trust and various other laws on the books to prevent business being forcibly funneled into a select few. It brought down Standard Oil and others. Quit trying to go through the government agencies. They have been lobbied to hard by consumer advocates and the interests that reap the benefits. We will never win a battle with the agencies, never. To emotional, they always trot out some NINA loan that should have never been done and brand the whole industry. We may not get the truth but we might get justice.
That is what i have been thinking and if it were done in huge numbers it may make a difference.. No matter how you look at it or find ways to stay successfull what is being force on us is socialism at it’s finest,, the govt has no right to tell private owned companies how they can pay there employees yet they are doing it,, that is the problem.
I agree – if we can get 50,000 broker types to file a suit together it would surely have some weight. We have problems organizing that is our biggest problem. Dodd Frank, the Feds, HVCC/AIR and CFPB are killing small brokerages.
YOU ARE ABSOLUTELY CORRECT!
Great show but what it did not address is the lack of any clear understanding of the anti-steering process. Brokers when signed up with Lenders have to choose the percentage (of LO Comp) of what they make from each lender. The intent of the law is to have a company receive the same amount (percentage) from all lenders. For example if I am signed up with 13 lenders all 13 should be at the SAME percentage (call it 1.5%). The reality of what has happened is a broker will have 12 lenders one price at 1.0% another at 1.5% another at 2% another at 2.25% another at 2.5% and another at 3% (you get the picture).
Brokers have done this because if they have a 400k loan they are cool with making 1.0% but on the 100k loan which will take as much if not more work than the bigger loan they are signed up with a lender that allows them to 3.25%. The reality is that the loan/lender that pays 1% was available this should have been offered, but the reality is that the LO will charge a higher rate so that they can get a higher return. NOT THE WAY I DO BUSINESS BUT THE REALITY OF WHAT HAS HAPPENED. I would really like to see a show that addresses this issue.
All the Best,
The problem with free markets, is there isn’t a free market. When the banks get together and decide how they’re going to pay, everybody toes the line because you’ve got no choice. Need an example? Why are the commissions paid to real estate agents the same? Ever tried shopping for commissions? Closest thing you get is a reduction-in-services/Help-em-Sell companies which do little more than put you on the MLS. There really isn’t any competition when the group you have to use sets the prices.
Great point. I keep telling my real estate friends the train is coming, but in reality I don’t believe it – their lobbyists are too good.
Sounds like regulation is now \screwing\ you guys/loan officers now just like Frank/Dodd screwed us appraisers by interjecting the AMC’s in the process. Appraisers are no longer able to operate in a free market for fees due to 99% of the AMC’s offering sometimes half the fees we used to get from \our clients\, banks, mortgage companies, etc. that no longer exist. I’ve been working twice as hard with complying to the new appraisal regulations for about 2/3rds. the fees I used to get from previous clients that took me YEARS to build. More government regulations taking away our free market abilities. Wonderful huh?
I would have done much better in school if my teacher would have taught percentages like you have today.
Personally I like the fixed % comp plan better then I thought I might when it rolled out in April of 2011. If a customer would have called me 2 years ago and told me that they were shopping rates I would have caved and offered my best rate. Now I can’t sharpen my pencil so to speak but my competition can’t either and the customers can’t play us lenders against each other.
That is the sales side of what we do,, there will always be competition and you will win some and you will lose some but that is better than being order takers that have no way to adjust.
What else can I say one of the best shows ever. Frank hit the nail on the head Brunets all the way. And give me back my ability to operate in a free market and take the socialism out of it.
The problem with loan officers and appraiser is they really have no collective group to successfully advocate for them. Realtors do and NAR does a fabulous job. Until an advocacy group with some teeth is formed for loan officers and appraisers this nonsense will continue.
Love the hat….Hook em Horns. Great content, great middle and love the ending.
To Hades with the CFBH, CASW, CBPF…whatever the name of that crazy l.o. comp committee is, leave us alone, the good loan officers are still here, the bad ones are working at Walmart.
I love water, in it, on top of it, looking at it or pouring it on something beautiful…Whoo Hoo!!!
Frank and Brian you nailed this one. Regardless if it is intended or not, the end effect as the money is still in the transaction, now it just flows to the banks. Is this just a grand plan to help recapitalize the banks?????
Hook em! Love the hat Brian.
The big losers on flat compensation will be borrowers with large complex loans. I have two loans now that I have invested over 6 months on each. Even though the loan amounts are high, I am only going to make $7/hour. So, how on earth could I even afford to stay in business if my compensation were cut 75% per the flat rate plan. Lenders are the big winners when all the mortgage brokers are gone and can no longer shop rates for borrowers.
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