Weeding out mortgage scoundrels

Rules impact borrower costs, dishonest lenders

Mortgage shoppers should have some understanding of the major steps involved in obtaining a mortgage, which have been impacted by several recent developments. The process begins with an initial contact with a lender, and ends with a closed loan.

While there are many differences in the ways that lenders operate, they must comply with the same or very similar laws and regulations, they use the same or very similar technology, and they sell their loans in the same secondary markets. For these reasons, the similarities among lenders in how they process loans are more important than the differences.

Of course, the scoundrels that dot the mortgage landscape have their own procedures that may be very different.