Posted by LynnNC on 8/28/06 12:15pm
Msg #141473

Beware of Archer Land Title in Charlotte, NC

Archer Land Title in Charlotte, NC gets all their business from brokers at Ace Mortgage and I have had several loans not close as the borrowers were not satisfied with the final figures. Not only will Archer not pay the the signing fee for loans that do not close, they will not pay for edocs. They owe me $75 in edoc fees alone!

Reply by Teddog/CO on 8/28/06 12:27pm
Msg #141476

Just a helpful hint.

Before you print. Just pull up the Hud and Note call the BWR and make sure terms are as agreed. Saves you a lot of grief if it's not as agreed. There's been quite the "outbreak" of sub-prime lenders as of late. Oh Promise Me ! Oh Promise Me ! Then you are at closing that nothing is as promised to the bwr and we suffer their wrath. Just a waste of everone's time and energy.

AH! Experience!

Best to you

Reply by Teddog/CO on 8/28/06 12:31pm
Msg #141478

Forgot to say!

Especially check if it's a lender you've never heard of before. Most of us already know most of the sub-primes.

Reply by Lynn Lowry on 8/28/06 12:55pm
Msg #141487

Re: Just a helpful hint.

I have decided that I will not handle loans with a mortgage broker involved.

Reply by PL on 8/28/06 1:04pm
Msg #141488

Don't all loans have a "mortgage broker" of some sort ? n/m

Reply by Ernest__CT on 8/28/06 1:23pm
Msg #141499

No. Some are direct to lenders. n/m

Reply by Lynn Lowry on 8/28/06 1:28pm
Msg #141500

Re: Don't all loans have a "mortgage broker" of some sort ?

A mortgage broker is a middle-man that supposedly earns his/her fee locating the best possible loan for the borrower. The broker fee involves special disclosures that you do not see with a lender-originated loan and the broker fees can be another 4% or more in addition to the origination and discount fees, and are disclosed on different lines on the HUD. Many borrowers have no clue how high the fees are until they see the HUD.

I have seen broker fees of over $10,000, and it is a charge borrowers can avoid by doing their own research and working directly with the lenders. Typically the borrowers have been solicited by the brokers, rather than the borrower looking for a broker. It might not be clear to a borrower that they are working with a broker, rather than a lender, until they see the broker fee disclosure.

Reply by BrendaTx on 8/28/06 4:00pm
Msg #141544

Re: Don't all loans have a "mortgage broker" of some sort ?

Lynn, I see this as well, but I still find they sign okay so far.

However, Tx is pretty tough on lenders.

Curious - how would you know about the broker when you accept the assignment?

Reply by ReneeK_MI on 8/29/06 4:52am
Msg #141734

Some details to the brokered loan situation, Lynn

*A lot of both prime and sub-prime lenders do not originate, and the only way to obtain their loan products is through a mortgage broker.

*Lender and broker fees totaled together must meet the limits set by each state that define what a high cost loan is (the Section 32 guidelines). Just elliminating the services of a broker doesn't NECESSARILY lower the total loan fees - it just provides a little more room for the other guy.

*When a borrower makes an application with a mtg broker, they receive their "preliminary disclosures" (usually mailed, and typically thrown away by a lot of borrowers). When that broker sends that borrower's application to a wholesale lender - that lender in turn mails another set (their set) of prelim disclosures to the borrower. Broker might even 'shop' that loan and send the application to several wholesale lenders - EACH of those lenders will mail disclosures upon accepting/inputting that application. Borrowers just typically do not read these, throw them away, and then often proclaim they had "no idea".

*If you decide not to do any closings that involve a mtg broker, that's going to be quite a chunk of business to pass on. If you see a pattern of a PARTICULAR broker (and often it's even further trackable, to a specific L/O) - you might find you can just refuse THAT particular person or company, without throwing 'the baby out with the bathwater'.

Reply by Lynn Lowry on 8/29/06 7:39am
Msg #141739

Good points, Renee

You are always a good source of information. I will at this point, make certain that I do no business with Ace as I have had problems with several of their brokers. One told a borrower that "a Home Equity Loan is the worst kind of loan; you only want to refinance." In doing so, the borrower was going from a 5.75% fixed to an 8.25% ARM, "the only loan" the borrower "could qualify for".

Reply by Bonnie_CO on 8/28/06 12:52pm
Msg #141484

I know that there have been some issues with the Charlotte office, they are trying to get it all straightned out. You might keep trying to get your money, maybe they'll send it once everything is straightned out.
My experience with Archer (in Denver and the Nat'l. office) has always been good. I just happened to do a closing with a LO and he's the one who told me about the Charlotte deal.

Reply by Bonnie_CO on 8/28/06 12:52pm
Msg #141485

Great to see You T-Dog! Missed ya around here! NM n/m

Reply by Lynn Lowry on 8/28/06 1:05pm
Msg #141489

Is all of Archer's business in other offices from Ace Mortage? My experience is that the brokers at Ace are for the most part bait-and-switch, lying sleaze-balls!

Reply by Bonnie_CO on 8/28/06 1:21pm
Msg #141496

The ofc here does do some Ace loans, I've only had a couple of them come through here so I haven't dealt too much with thier LO's. The 2 I did went ok, borrowers didn't seem suprised about anything in the pkg. Maybe i've just been lucky so far when it comes to Ace, we'll see, thanks for the heads up though.