Refinance Mortgage Broker: Beware Mortgage Broker Banks When Refinancing Your Mortgage Loan

If you're in the process of refinancing your mortgage and work with a broker, a mortgage broker could be robbing you blind without you even knowing it. Broker Banks are a special type of lender that is almost indistinguishable from other mortgage brokers and are exempt from the publication of all laws that protect homes in the United States. Here's how to protect yourself from fleecing banks brokers when refinancing your home loan.

When the Real Estate Settlement Procedures (ReSPA), the legislation is making its way through Congress and Senate, your friendly neighborhood bankers lobbied intensively to be excluded from the proposed legislation. Millions of dollars changed hands and became law when ReSPA, lo and behold, the banks are exempt from the disclosure of the newly established laws that protect American homes from predatory lending practices.
ReSPA hole for banks is the reason why you should never apply for a mortgage with the bank, but what is a mortgage broker? Mortgage brokers are required to disclose under ReSPA, but wanted the same loopholes given to your bank, as a result, the Broker-Banks are born. Broker-Banks are virtually indistinguishable from any other mortgage broker, except for one key factor. Broker-Banks are exempt from disclosure laws RESP. This means that if a mortgage broker charges you a $ 1,000 fee for their services, they are required by law to disclose this fee to you. Broker-Bank can charge the same $ 1,000 fee without you even knowing it.
Broker-Banks exploit this loophole exploited by interest rates that are sold with your mortgage. That's right, you sold the interest rate, and not qualified by the lender. Broker-Bank receives a bonus for selling you a loan with a higher interest rate. For every 0.25% you agree to pay extra on your mortgage interest rate, broker-bank receives a bonus of as much as 1 to 1.5% of your loan balance. Broker-Bank Overcharges you, bonus pockets of the lender, and none the wiser.
This is why you should never do business with banks or broker-bank, when it comes to your mortgage. The bad news is that the Bank Broker are almost indistinguishable from a mortgage broker. How can you tell if your mortgage broker is the actual agent or broker-bank? You can learn this and more by registering for a free mortgage guide.