Prosperity with a Purpose Launches Mymortgagefees.com

From The Joint Center for Housing Studies Harvard University: "Brokers do not work on behalf of the borrower or the wholesale lender or investor who funds the loan." A new service now exists to review the fees on a mortgage shopper's Good Faith Estimate.

(PRWEB) February 18, 2006 -- A study by Kellie Kim-Sung and Sharon Hermanson supports the idea that refinancing loans are frequently “sold, not sought,” in that they result from extensive and often unsolicited outreach by brokers to homeowners who are not actively in the market for a loan.

"It is not surprising that a larger share of borrowers with broker-originated loans (70 percent, compared with 52 percent for lender-originated loans) “counted on lenders or brokers to find the best mortgage,” since the borrowers did not initiate the search for the refinance loan. Unfortunately, their trust is often misplaced. Borrowers with broker-originated loans are more likely to pay points (25 percent, compared with 15 percent for lender-originated loans) and more likely to have a loan with a prepayment penalty (26 percent, compared with 12 percent for lender-originated loans).

These findings imply that some brokers actively work to identify borrowers who lack the experience to correctly evaluate mortgage terms and prices."

Knowledgeable mortgage professionals know that they can share three different good faith estimates, all saying different things and they and the companies they represent will still earn the same money.

One of the ways this happens is simple. Mortgage professionals use a primary philosophy when it comes to pricing loans for their mortgage applicants, according to Sherman Mohr, Past President of the Tennessee Association of Mortgage Brokers and a 20 year mortgage veteran. Mr. Mohr states, "The loan officer sits across from you at the desk and sizes you up and then basically asked himself, "What will Mr. Applicant sit still for with respect to the rate and the fee I charge for this loan?"

Prosperity with a Purpose provides one potential solution for the problem. For a small fee of $49.95 Prosperity's independent staff of Good Faith Review Experts will review the numbers, identify abuses and issue a timely and useful report so as to level the playing field with a mortgage provider.

The process is easy. Pay for the review, fax the documents, and within a day or so, the review comes via email. This program is available exclusively through Prosperity with a Purpose representatives.

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