By Jared Martin A common question most borrowers have is, “how is my loan application evaluated”, or “what is an underwriter looking for?” There are 4 main things an underwriter is evaluating: capital, capacity, character, and collateral. The first 3 relate to the borrower, and

Accurate pricing depends on a number of borrower, property, and transaction characteristics. If these are not known or used, the price cannot be accurate. Loan originators who quote the best prices possible — and sometimes even better than the best possible — with the intent of roping in the customer are low-balling…

In the past 10 years, I have written almost 50 articles on different mortgage broker topics, but none of them addressed the most basic topic of all: What makes a good broker? Perhaps it took 10 years before I was ready to confront this question, along with its obvious corollary: How do you know a good broker when you see one?

At a customer’s request, UMBs disclose their fees to customers in writing and in advance. At the customer’s request, UMBs also disclose the wholesale prices (rates and points) they receive from lenders. Customers of UMBs pay the broker’s fee plus wholesale loan prices…

Many borrowers are reluctant to sign a contract with a mortgage broker that bars the borrower from working with another loan provider. The following letter is typical. “The mortgage broker I contacted asked me to sign an “exclusive agency”…