After all the mortgage fraud, foreclosures and Countrywide did you know that if you go to a mortgage broker he is not bound to work in the best interests of the Borrower? It’s is hard to believe but there you have it. Senator Schuemer of New York has for several years tried make fiduciary part of the mortgage brokers role – but so far it is not.
Just to distinguish Real Estate Agents/Salespeople and Brokers are required to take a fiduciary role with their clients and work in their clients best interests, but Mortgage Brokers do not.
“Chase won’t lend to brokers’ clients anymore. The PMI Group, one of the biggest companies in the mortgage insurance business, flat out refuses to underwrite any policies on loans that started with a broker.
Mortgage brokers work for themselves, not for you. They do not provide a personal shopping service and may compare only a handful of lenders on your behalf. If you want to be sure you’re getting the best rate and the lowest costs, the only way to come close to succeeding is to hunt extensively on your own.”
Some of the best advice about regarding mortgage brokers and bankers is in this article from the New York Times yesterday,
to read more, here.