If you want the best refinance rates without paying junk fees, finding a good broker is the quickest way to mortgage bliss. The problem is new regulations passed by the Federal Reserve have brokers leaving the business as if abandoning a sinking ship. If you’re trying to find the right person to arrange your mortgage refi you’ll want to check out this article from NationalMortgageNews.com:
Earlier this year the Federal Reserve installed new regulations governing how loan brokers can be compensated – and the results are in: the broker/wholesale market share fell to 6.9% in the first quarter, the lowest reading ever recorded by National Mortgage News and its affiliate, the Quarterly Data Report.
The new rules regarding mortgage broker compensation went into effect April of 2011 and states that mortgage brokers are paid by charging you a mortgage origination fee or take lender paid compensation (called Yield Spread Premium) but not both. Chalk it up to greed, but for many brokers, these new rules aimed to protect homeowners from abuses were too much.
There are honest mortgage brokers out there willing to work for a flat one percent of your mortgage refinance loan amount; you just have to find them. You can learn more about finding the right person to arrange your mortgage refi with the best refinance rates available without junk fees by checking out my free Underground Mortgage Refinancing Videos.