National Mortgage Complaint Center Mocks The Feds' Transparency Mortgage Fee Attempts & Says It's Time For A US Mortgage Revolution

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The National Mortgage Complaint Center is mocking the US Department of Housing & Urban Development's attempts to make the financing or refinancing fees for the average US consumer more transparent. The group says, "We are demanding HUD go back to the old one page Good Faith Estimate format, that at a minimum allows consumers to see who is making what. This new multi-page mortgage disclosure form looks like something that was designed by intoxicated bureaucrats at the IRS." The group says, "Further, we are demanding that banks and mortgage bankers be forced into disclosing all kickbacks, or quote en quote rebates know as yield spread premiums, along with the service release premiums, so the consumer can actually see how much the lender is making on a mortgage transaction." They say, "The US mortgage system is extremely wasteful, it is full of needless fees, redundancy, title insurance fees that are way too high, and we think it's the right time for a flat mortgage fee system for most homeowners--not the 'we are going to bleed you for every nickel and dime' mortgage system we have today." http://NationalMortgageComplaintCenter.Com

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The US mortgage system is extremely wasteful, it is full of needless fees, redundancy, title insurance fees that are way too high, and we think its the right time for a flat mortgage fee system for most homeowners

The National Mortgage Complaint Center is saying, "The US mortgage system is broken, it needlessly wastes the consumer's money, it gouges the consumer with schemes like title insurance costs, or lacks transparency with respect to kickbacks such as the yield spread premium, and it really is time for a revolutionary change in the mortgage world." They say, "Most consumers have never heard of a yield spread premium kickback mortgage brokers have to disclose, or are supposed to disclose, but banks have no such requirement, even though they get the very same kickback." The group is saying, "Most current US homeowners have no clue they are paying a higher monthly mortgage payment because of the yield spread premium kickback scheme--but they are. We are simply saying it's time for a change. The future of the mortgage industry is a flat fee approach regardless if the home costs $100,000, or $500,000--not this nonsense we have today." http://NationalMortgageComplaintCenter.Com

But the Federal Government will fix the US mortgage mess when it comes to financing, or refinancing a home, right? The National Mortgage Complaint Center says, "We have lost all faith in the federal government's ability to protect consumers in the mortgage process. Had the US Department of Housing & Urban Development, or the US Congress been on top of things in 2003 or 2004, we probably would not have the current US real estate disaster. Tragically they were all asleep at the switch, and with the federal government's or Congress's recent mortgage transparency attempts like the new Good Faith Estimate, it appears to us they are all still asleep at the switch, or worse yet, bought and paid for by the banking, mortgage banking or title insurance industry's special interest groups." http://NationalMortgageComplaintCenter.Com

So how would the new flat fee mortgage process work? The National Mortgage Complaint Center says, "Initially the flat fee mortgage fee service would be designed to service borrowers who have very good credit, with FICO scores of 740+. There would be a flat fee that would cover everything including loan origination fee, credit report, appraisal fee, processing, tax certification, and flood certification, all bundled into one fee, say $2500 to $3000, regardless if the home costs $100,000 or $500,000. This would save the typical borrower $1000's." They say next, "We would propose a completely brand new national title insurance company that would offer rates perhaps as low as one-third of what they are today--perhaps even closer to one-quarter of what they are today, there literally is that much profit in title insurance." The group says, "and finally we would have escrow hubs in each state, that do nothing more than prepare documents for closing, and disburse funds to sellers, mortgage holders, etc. All closings would be done by mobile notaries that come to the borrower's home for closing." http://NationalMortgageComplaintCenter.Com

The National Mortgage Complaint Center says, "There is an old saying--build a better mouse trap and people will line up to get it. The flat fee, bundled mortgage service is the future for US high credit rated mortgage and equity-driven originations. Why is the cost of doing a $500,000 mortgage greater than a $150,000 mortgage cost when the same amount of work is done in each transaction?" They say, "The flat fee, bundled mortgage service is not only the future, it instantly makes all major US banks or existing title insurance companies obsolete, and they would be instantly forced to change or face extinction." The group says, "The win for the consumer would be obvious--instead of paying $6000 to $10,000 for a mortgage directly or indirectly, they would be paying close to half of this amount, and because the service has a flat fee, the service would be designed to get the borrower the lowest possible rate. The flat fee mortgage service would make its profits from volume, as opposed to gouging every consumer as much as possible." http://NationalMortgageComplaintCenter.Com

Ever hear of a Service Release Premium? The National Mortgage Complaint Center says, "A SRP, or Service Release Premium, is the amount an investor will pay a bank or mortgage banker for your loan. It's rarely, if ever, disclosed to the borrower." They say, "In the flat fee concept, the SRP will be included and disclosed to the consumer up front. It can range between $1000 to $3000 depending on the loan amount and the quality of the borrower." The group says, "The US Mortgage System is flawed, it is inefficient, it needlessly gouges consumers, it really is time for a change. So who wants to be the next Bill Gates?" http://NationalMortgageComplaintCenter.Com

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