Post date: Jan 09, 2011 6:37:4 PM
The sad part is that the customer will no longer have as many choices as they do now when it comes to pricing. As an example at given loan amount I may charge the client 1.0 point at 4.250%, 0.5 point at 4.375%, or 0.00 points at 4.500%; in all cases making 1.0 point, and disclosing that to the customer. Under the new rules the 0.5 point option will go away, since we will be prohibited from mxing comensation; it either comes from the borrower OR the lender not both. Only the customer suffers. It is clear that a politician wrote the law with clearly no experience in the lending industry.