Consumer be Wary Series: Mountain Trust Realty Launches Consumer Awareness Campaign to Expose Deceptive Selling Practices Targeting First Time Home Buyers
New Home Buyers Need to Exercise Greater Vigilance When Engaging Agents and Lenders Motivated to Steer Them to Homes That Can Generate Higher Commissions.
San Diego, CA, November 15, 2012 --(PR.com)-- Military veterans, newly transplanted Hispanic-speaking immigrants, and first-time home buyers should carefully scrutinize major “Big Box” real estate companies who are working hand-in-hand with “in-house lenders” to aggressively promote so-called “dream home deals” that come with special “discount mortgage rates.” That's because such rates are often designed to benefit the real estate agents and lenders at the expense of consumers.
That’s the message being conveyed by Gary Cooper, a longtime mortgage broker and noted consumer advocate who owns and operates a respected independent mortgage and realty business in North San Diego County.
“Many brokers and agents today are increasingly feeling the economic pinch. So they are steering inexperienced and particularly first-time buyers to so-called 'dream home deals' that actually pay higher commissions. These commissions are frequently shelled out through 'in house lenders' that the listing agents work with who in turn steer the buyers to major lenders who manufacture their own internal rates. The agents make it sound like the transaction will go more smoothly if the novice buyer agrees to work with their own in-house lender,” Cooper laments.
Unfortunately, in-house lenders who work with these ‘Big Box’ real estate franchises are often there to represent the interests of major lending institutions. Many aren’t required by law to disclose that many of these major lending institutions are manufacturing their own internal rate sheets. What they are often charging for with any given interest rate are know as Yield Spread Premiums. This is additional compensation that is paid to the company that closed the loan. Hence, they frequently tend to steer unwary consumers to their own “internal rates sheets” rather than what is more commonly known in the industry as the actual “market rate.”
According to Cooper, in order to get the true market rate through such lenders, the consumer might have to pay “discount points” or what is more commonly know as “buying down the interest rate” based on that lender's own internal pricing. This lack of complete disclosure can dramatically impact the total long term cost of many loans. In some cases, it can include hidden fees, higher commissions, and even additional interest payments that can add as much as $10-40,000 or more to the life of today's most common single family home loan.
Mountain Trust REALTOR® Sarah Smith notes: “Independent companies like ours only employ licensed REALTORs® and licensed Loan Consultants. All of our staff is licensed and trained; consequently, we’re held to the highest standards of ethics and professionalism regulated by law. So we're required to act in the consumers' best interests. We educate our customers with regard to ALL of their options for their home loan needs. And we can often find ways to make these favorable rates even more favorable with professional creativity that’s both ethical and completely transparent.”
Adds Cooper: “As licensed REALTORS® and Loan Consultants, we’re required to constantly exercise our fiduciary duties to protect consumers' interests. That’s why independents like us are here...to help.”
About the Companies
Mountain Trust Realty and Mortgage Trust Mortgage are a full service lender and a real estate company uniquely positioned to provide clients with “one-stop real estate shopping” services conveniently located under one roof. Mountain Trust Mortgage has consistently been awarded an A+ rating by the Better Business Bureau since first registering with the agency nearly ten years ago. Our highly seasoned, vetted team of brokers and agents are specifically trained to actively listen to clients' needs, identify relevant issues, and advise them with regard to a wide range of solutions that are in their best interests. We take pride in placing our clients' best interests ahead of our own. Whether discussing potential loan modifications, refinancing as a last resort, or even short sales, our highly knowledgeable, talented team enjoy helping home buyers and sellers respond to what can often seem like daunting challenges with comprehensive information, sensitivity, professionalism, and pride.
For more information, or to request a free initial consultation, call 1-858-376-1299
Or go to www.mountaintrustrealty.com or www.mountaintrustmortgage.com
Contact:
Gary Cooper, President
Mountain Trust Realty
Mountain Trust Mortgage
gary@mountaintrustmortgage.com
That’s the message being conveyed by Gary Cooper, a longtime mortgage broker and noted consumer advocate who owns and operates a respected independent mortgage and realty business in North San Diego County.
“Many brokers and agents today are increasingly feeling the economic pinch. So they are steering inexperienced and particularly first-time buyers to so-called 'dream home deals' that actually pay higher commissions. These commissions are frequently shelled out through 'in house lenders' that the listing agents work with who in turn steer the buyers to major lenders who manufacture their own internal rates. The agents make it sound like the transaction will go more smoothly if the novice buyer agrees to work with their own in-house lender,” Cooper laments.
Unfortunately, in-house lenders who work with these ‘Big Box’ real estate franchises are often there to represent the interests of major lending institutions. Many aren’t required by law to disclose that many of these major lending institutions are manufacturing their own internal rate sheets. What they are often charging for with any given interest rate are know as Yield Spread Premiums. This is additional compensation that is paid to the company that closed the loan. Hence, they frequently tend to steer unwary consumers to their own “internal rates sheets” rather than what is more commonly known in the industry as the actual “market rate.”
According to Cooper, in order to get the true market rate through such lenders, the consumer might have to pay “discount points” or what is more commonly know as “buying down the interest rate” based on that lender's own internal pricing. This lack of complete disclosure can dramatically impact the total long term cost of many loans. In some cases, it can include hidden fees, higher commissions, and even additional interest payments that can add as much as $10-40,000 or more to the life of today's most common single family home loan.
Mountain Trust REALTOR® Sarah Smith notes: “Independent companies like ours only employ licensed REALTORs® and licensed Loan Consultants. All of our staff is licensed and trained; consequently, we’re held to the highest standards of ethics and professionalism regulated by law. So we're required to act in the consumers' best interests. We educate our customers with regard to ALL of their options for their home loan needs. And we can often find ways to make these favorable rates even more favorable with professional creativity that’s both ethical and completely transparent.”
Adds Cooper: “As licensed REALTORS® and Loan Consultants, we’re required to constantly exercise our fiduciary duties to protect consumers' interests. That’s why independents like us are here...to help.”
About the Companies
Mountain Trust Realty and Mortgage Trust Mortgage are a full service lender and a real estate company uniquely positioned to provide clients with “one-stop real estate shopping” services conveniently located under one roof. Mountain Trust Mortgage has consistently been awarded an A+ rating by the Better Business Bureau since first registering with the agency nearly ten years ago. Our highly seasoned, vetted team of brokers and agents are specifically trained to actively listen to clients' needs, identify relevant issues, and advise them with regard to a wide range of solutions that are in their best interests. We take pride in placing our clients' best interests ahead of our own. Whether discussing potential loan modifications, refinancing as a last resort, or even short sales, our highly knowledgeable, talented team enjoy helping home buyers and sellers respond to what can often seem like daunting challenges with comprehensive information, sensitivity, professionalism, and pride.
For more information, or to request a free initial consultation, call 1-858-376-1299
Or go to www.mountaintrustrealty.com or www.mountaintrustmortgage.com
Contact:
Gary Cooper, President
Mountain Trust Realty
Mountain Trust Mortgage
gary@mountaintrustmortgage.com
Contact
Mountain Trust Realty
Gary Cooper
1-858-376-1299
www.mountaintrustrealty.com
Gary Cooper
1-858-376-1299
www.mountaintrustrealty.com
Contact
Categories