When the recession hit, the nation was forced to bail out big banks and lending institutions. Afterwards, The Dodd-Frank Act (fully known as the Dodd-Frank Wall Street Reform and Consumer Protection Act) is a United States federal law that regulates the financial industry. Enacted in July 2010, this act aims to prevent another financial crisis by creating new regulatory processes.
Yet, the Dodd Frank Act has unintentionally made it much more difficult to provide accurate numbers in the beginning of a transaction to close and fund a loan prior to a rate lock expiring. This is due to new date and time restrictions levied on lenders to provide paperwork and requiring actual figures when none are available. After disclosing terms and conditions to the borrower, Dodd Frank prohibits amending those terms and conditions that would allow a broker to lower the charges to a borrower.
Unrealistic time constraints, the inability to discount charges after the process has begun and deliberate oversights in the Dodd Frank legislation such as commission disclosure by banks are contributing factors in the “too big to fail banks and lending institutions” as described by the Federal Reserve Bank of Dallas president Richard W. Fisher recently in the bank’s 2011 annual report.
Paying twice for your mortgage? Yes, your hard earned tax dollars are given to managers of those chosen few large banks who brought our country to brink of economic disaster and twice, they now charge as much as twice what an independent mortgage broker shop charges for a mortgage and these institutions don’t have to disclose how much money they made.
This accounted for part of an approximate $3.6 billion net income increase between 2010 and 2011 for one large bank and the CEO’s salary more than quadrupling during the same time. Does this make sense to you?
Instead, consider the alternative- an independent mortgage broker who is dependable and trustworthy. Consult The David Damaré Team, 919-851-0999 for an accurate home mortgage qualification.
ADR Mortgage and The David M. Damare’ Team remain independently owned and operated, never accepting nor requiring any government assistance. We are a boutique lender operating in many states with low cost, the savings of which we pass on to our clients and a penchant for platinum customer service that ensures our continued success and livelihood.
“Mortgage Lending is Our Business: Customer Service is Our Passion.”
Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you. David. 919.851.0999.
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