Kathy,
I don't have an arguement. Still trying to figure out why you posted what you did at all. Go back and read the first part of the sentence. The part where I spoke of the HUD RESPA Compliance Officer..before the part where you copied my out of context comment. We are all aware that RESPA is an Act administered by HUD.

Are we? You and I are so when I say we I don't mean us. Read the thread about the Wells Fargo thing....Many refer to RESPA as being a group of trouble makers akin to the IRS (not that the IRS are trouble makers...I would NEVER say anything like that ) or the FTC or some real body or office of government initself. so when I read "check with RESPA" it had a ring of implying it was someone you could look up in the phone book under "R" and get a number for.

I honestly did not mean to pick on your post...re-reading it I can see where you thought I was coming off as snotty. I'm sorry. If you can or want to scan back through the Wells Fargo thread and see if maybe you get the same impression I did in a few of the posts. It kind of got to me and I finally had to point it out. NOT because it was YOUR post or because I wanted to attack you personally either, so again I truly apologize that I came across that way.

Here I have posted this a few times:

A Realtor HAS to do five items in addition to filling out the application in order to be compensated by the LO.

http://www.hud.gov/offices/hsg/sfh/res/resp0222.cfm
Section C

In the determination of whether payments from lenders to mortgage brokers are permissible under Section 8 of RESPA, the threshold question is whether there were goods or facilities actually furnished or services actually performed for the total compensation paid to the mortgage broker. In making the determination of whether compensable services are performed, HUDīs letter to the Independent Bankers Association of America, dated February 14, 1995 (IBAA letter) may be useful. In that letter, HUD identified the following services normally performed in the origination of a loan:

(a) Taking information from the borrower and filling out the application;

(b) Analyzing the prospective borrowerīs income and debt and pre-qualifying the prospective borrower to determine the maximum mortgage that the prospective borrower can afford;

(c) Educating the prospective borrower in the home buying and financing process, advising the borrower about the different types of loan products available, and demonstrating how closing costs and monthly payments could vary under each product;

(d) Collecting financial information (tax returns, bank statements) and other related documents that are part of the application process;

(e) Initiating/ordering VOEs (verifications of employment) and VODs (verifications of deposit);

(f) Initiating/ordering requests for mortgage and other loan verifications;

(g) Initiating/ordering appraisals;

(h) Initiating/ordering inspections or engineering reports;

(i) Providing disclosures (truth in lending, good faith estimate, others) to the borrower;

(j) Assisting the borrower in understanding and clearing credit problems;

(k) Maintaining regular contact with the borrower, realtors, lender, between application and closing to appraise them of the status of the application and gather any additional information as needed;

(l) Ordering legal documents;

(m) Determining whether the property was located in a flood zone or ordering such service; and

(n) Participating in the loan closing.

[...] HUD articulated that it generally would be satisfied that sufficient origination work was performed to justify compensation if it found that:

The lenderīs agent or contractor took the application information (under item (a)); and

The lenderīs agent or contractor performed at least five additional items on the list above.

I just read on page 2 that someone thinks Mortgage Brokers purposley put customer in Pre-payment penalties to get a kick back from the bank. That statment is completley false. Pre-payment penalties are used to get the customer better interest rates.

Loan officers in CA must be licensed in real estate to do loans. Just because we passed our license doesn't make us real estate agents. I, for one, have NO EXPERIENCE as an agent, therefore I would NEVER even think of advising my clients on R.E. issues, I leave that part up to the "experts in real estates"--meaning YOU the agents. Unless, you have been a loan officer, learned what, why, when etc...of the mortgage industry, I don't understand why some insist on advising our clients on what is right and what is wrong regarding the financing terms they are getting. Forming RESPA compliant alliances with lenders who have the same level of integrity, work ethics as you do is a GOOD THING. This way you will know that your clients will be treated fairly no matter what by your lender partner. Why? Because both parties will be on the same page in regards to putting the client's best interest first which in turn will generate more reciprocal referrals for all parties involved. Moreover, when this happens, agents can focus on doing their job and loan officers can focus on doing theirs without having to worry about who's gonna screw who over next. It goes both ways. Maybe not all loan officers are ethical but make no mistakes, there are just as many agents who don't have their clients' best interest at heart (i.e. "give them a neg-am and call it a day"--when people are W2 and on a budget!) This subject gets me so fired up but don't take it personal.

Peace!

"Loan officers in CA must be licensed in real estate to do loans." by Alea, CA


Not true, you have CE requirements if under a DRE. If you are under a CFL, this does not apply.