Allowing yourself to get ripped off and then complaining about it is ridiculous.

 

Please. The average person does not have the ability to read the wherefor's and herein's etc and fully understand the implications of what they're reading. They simply hope their broker is an upstanding individual.

 

Also, getting ripped off IMO does not include a Mortgage broker charging points on a loan. They have to eat also and they are providing a service to find you the best product available. Hiding points and disguising them as other fees, putting upsell's in the margin of an adjustable rate, changing terms and not disclosing them to the customer, that is shady.

 

I have zero problem with points. Its no different than a store charging more than their supplier charges them. Its upto the consumer to shop around for the best deal.

That's the whole problem. Many people have no idea what they're reading, let alone signing.

 

 

Then they are foolish for not getting advise from someone that does understand the documents.

 

I feel no sympathy towards folks that sign documents that they don't read or understand...well I do as I hate to see anyone have misfortune, but its misfortune that they brought upon themselves.

 

Sort of like the folks that bought homes from Erpenbeck several years ago and failed to get an Owner's Title Insurance policy or have an attorney get involved. I'm an attorney (that does a lot of commercial real estate and commercial financing work) and I would never, and I mean never, purchase real estate without getting an Owner's policy. And my guess is that if these folks had spent several hundred dollars and retained a competent real estate attorney, that attorney would have advised them to get title insurance and saved them a lot of trouble and anguish.

 

If the folks who took out sub prime loans had spent several hundred dollars and retained an attorney who could understand the loan docs, they'd have been better off. But they probably didn't want to spend the money. Foolish. Penny wise, dollar foolish that is.

 

I will say that I had a disheartening moment driving back from Cols earlier this afternoon and it somewhat caused me to reconsider my position in re the people messed up in the sub prime loan situation. Willy Cunningham was agreeing with my view. . That caused a moment of real consternation.

Title insurance is a requirement on all loans that we close. I think it can be somewhat gouging but definitely necessary for the borrower. The Erpenbeck situation was a good example. 80% of borrowers though don't understand what it is though and why its important.

 

So LN, did you give Willie a FULL REPORT?

That's the whole problem. Many people have no idea what they're reading, let alone signing.

If you sit down and read it most the important stuff is clear. It says your rate will adjust on this date blah blah blah.