no title fees?

joeGeneva · Joined: 17 Jun 2005 Posts: 3

Hey guys (and gals) Im new on here...and had a question. Have any of you actually seen or done a no cost loan, including title fees? I just lost a deal to a mortgage company that gave a borrower the same rate, but told him they will waive all fees including title. I pretty much told him they were lying, but Im not sure. Anyone?

tropical breeze · Joined: 03 Feb 2005 Posts: 3 Location: Hawaii

Follow up with your lost borrower, and ask them to share with you the final HUD after closing. Tell them you are constantly learning newer and better ways to do your business, and if they could do something that you could not, you want to see it to learn how it was done.
This way, you'll know if it can be done or if was hogwash.

Then come back here and tell us what you found out.
aloha 8)

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

sage advice. it is possible that they just paid for that stuff out of their profits, or that they had a special arrangement for lower fees or combination of both.

joeGeneva · Joined: 17 Jun 2005 Posts: 3

Well on a 500k loan Its hard to believe they will shoulder those kind of costs. I did ask him to send me a copy of a GFE from that company, but after telling him he was basically being lied to, I dont think he will.

I have read through some of the posts on here, and from what I can see this kind of stuff happens a lot. I also do a lot of work on Lending Tree, and theres too many shady companies (or LO's) giving hard working LO's a bad name. Quotes and fees that dont exist, and than the old bait and switch at closing. Thanks goodness for referals, its hard to compete with that kind of crap.

6 years in the biz, and everyday you learn something new! Thanks again!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

500k loan? What do you mean wouldn't shoulder the costs? If we had a 500k loan we'd certainly consider helping out if it meant we were getting the deal from someone else. Especially if there's a servicing value involved, like with us, if we can get the deal it becomes less about the rate and more about the deal itself.

chow · Posted: Thu Jun 23, 2005 5:10 pm Post subject:

Didn't anyone ever tell you that half of the title company costs are commissions paid the day of closing? :P :P

I guess my evile twin should have said that??????????????? :wink:

I just can't get that password to work, and David'd ignoring my evile side!

okay. now. I just looked at a GFE from a bank for 7.125% on a slam dunk FHA purchase. (they were gonna cover all of the costs too!)

I'm locking the same loan at 5.75 and covering half the closing costs for buyer, and seller is doing the rest, and we have a nice little DAP in place.

took me 2 hours to make that 2k. Joe, what's your back yard worth to ya?

Can you just walk around in shorts on a No Zone day and get loans?

so you wouldn't cover those costs eh? :roll:

liverichly · Joined: 10 Feb 2005 Posts: 199 Location: Orange County, CA

We do/did actual "no closing cost" loans all the time... paid them with extra rebate.

Especially on a $500k loan there should be plenty of rebate to go around. I'm not sure what type of firm you are in, but sometimes places don't even believe in paying for all fees... I say if it's going to get the deal done it's better than not doing the loan at all. Plus you might get a referral down the line, or refinance them again when rates get lower.

joeGeneva · Joined: 17 Jun 2005 Posts: 3

Well when it comes to our bank fees, I can make them go away. But title is different. My bank will not waive those fees.

The more I look into it, it might be that the borrower is playing peter against paul to get the best deal he can get. I think he's full of sh......

I could pay for those fees out of my pocket, which means most of my commission would go towards his title. Now why would I want to do that?

You either pay the title fees out of ysp/srp or own the title company and don't use any money for costs. There are actual costs to title policies, so call his bluff. either way-he needs title insurance, the policy isn't free-and I don't know anyone who will lend without a clear title and insurance to support it in case an issue rears it's ugly head.

ummmmm, nothing or nothing. Really makes that loan work- doesn't it? :roll:

I'd do the same thing. Your employer doesn't get free utilities, and your costs aren't free, so......call his bluff. What are you losing? :wink: