Greetings my fellow NSAs,
I was checking Yahoo Finance to see if I can fully retire in this century and spotted this article that was ‘reprinted’ from Business Insider [link included in the article]. The Mortgage Bankers Association is reporting that for the first time since 2008 Lenders are loosing money with new mortgages. I’m not certain I believe the authors, but I did find it interesting. What really caught grabbed my attention were the comments at the bottom of the article.
They ain’t losing money; they are just not making as many loans because of higher interest rates. Even with less loans, they are NOT losing money. Agree, the comments are where the truth and reality are.
It’s like a Las Vegas casino, the house always wins.
This is true. I’m a MLO and I can vouch for this.
After reading the article, I read some of the comments posted. For instance, one comment stated the following:
"If anyone has ever spent any time in the mortgage industry, there’s a very important document called the Closing Disclosure. This tells the Borrower/Home Buyer just how much everything is to the penny. It shouldn’t cost $800-1200 for an Appraisal. It shouldn’t cost $250 to record a Mortgage at the courthouse. It shouldn’t cost $350 for a Pest Inspection. It shouldn’t cost $500 to prepare a title report (I used to do them, it’s no big deal).
A lot of the closing costs associated with closing on a house are INSANE and unaffordable. I’ve been in this business a long time and the costs are bloated and out of control. Homes could be affordable but all the hidden junk people have to shell money out for is inexcusable. Yes, they’re necessary, but the fees are not."
Looking at the cost it take to do a mortgage loan, there maybe some validity in the article. Heck, look at what is happening to us, the reduction in loan signing fees. The costs to operate our business has increase. At some point a market correction will occur in the mortgage industry.
@RiverpointeTax Agree that the article was “interesting” . . .
The Comments Section elucidated without a doubt the savvy knowledge & insights possessed by their readers.
Thank you for sharing! 
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