Richard Bouchner, who co-founded real estate and mortgage brokerage
Commodore Property Group in 2003, thought last month that business was
returning after a tough year for mortgage brokers.
He'd gotten a referral for a borrower he described as a
well-qualified, financially savvy New Yorker buying her first
apartment. He'd arranged a 30-year fixed mortgage of around $480,000,
at 5.125 percent with no points. Then his client read the fine print, saw that he'd make $4,800 on the deal, and opted to get her loan from the bank instead.
"She said, 'Rich, I don't feel comfortable with this yield-spread
premium,'" Bouchner recalled, referring to the money a mortgage broker
makes for locking in an interest rate above par on a loan for a
borrower. Banks don't have to provide similar disclosure on their
profit on a loan.
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance or advertisements. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments