Today we release more of our interview with MBA President David Stevens. Today he goes over the CFPB and outside of QM loans, MSA’s and New Lenders getting into the business.
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Hi Guys,
I have a question that has haunted me, and I’m sure many other mortgage originators, over my 32 year career in the business. How is it possible that new home builders can use their own mortgage companies to do loans for their new home buyers, give a huge cash incentive to use them, and then not give that same huge cash incentive
If the borrowers use the lender who has them Du Approved and has had for months. I had a relative who I had approved for 5 months who found a new home they wanted to buy. They went into the office to complete the purchase agreement and told them I was doing their loan and that they had a complete DU Approval from me. They said they were welcome to use me but if they did they couldn’t have the $10,000 incentive bonus to help pay their closing costs, etc. I’m sure we have all had this happen but how is this not a RESPA violation?
Please let me know your opinion. It just seems unethical and illegal. Makes no sense at all.
It seems The builder’s preferred lender incentive is a huge issue across the country. Definitely in my space. Many of us would love to see that issue addressed.