BrokerageIndustry News

Mortgage brokers jump ship

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Editor's note: This article is reposted with permission by The Real Deal. Click here to view the original article. By CATHERINE CURAN NEW YORK -- Richard Bouchner, who co-founded real estate and mortgage brokerage Commodore Property Group in 2003, thought last month that business was returning after a tough year for mortgage brokers. He'd gotten a referral for a borrower he described as a well-qualified, financially savvy New Yorker buying her first apartment. He'd arranged a 30-year fixed mortgage of around $480,000, at 5.125 percent with no points. Then his client read the fine print, saw that he'd make $4,800 on the deal, and opted to get her loan from the bank instead. "She said, 'Rich, I don't feel comfortable with this yield-spread premium,' " Bouchner recalled, referring to the money a mortgage broker makes for locking in an interest rate above par on a loan for a borrower. Banks don't have to provide similar disclosure on their profit on a loan. ...