I’m from the government and I’m here to help you! We’ll see. The way mortgage and loan brokers have new rules on how they get paid. aka Bye Bye YSP.
The Federal Reserve Board on Monday announced final rules to protect mortgage borrowers from unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices. The new rules apply to mortgage brokers and the companies that employ them, as well as mortgage loan officers employed by depository institutions and other lenders.
Just in case you’re too young to remember in the “good ole days”, the only place to get a mortgage loan was your bank of savings and loan. After the saving and loan industry died a horrible death, mortgage and loan brokering evolved to help people get loans and more importantly, help banks sell money. Click the title above to see the new rules.