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Rick Pelleriti

Confused Over the New Loan Officer Compensation Laws? Here's How to Keep it Simple

Monday, April 25, 2011 - Article by: Rick Pelleriti - American Capital Corp. - Message

At the beginning of April, the lending world was turned upside down again when the Feds passed some laws to control and regulate what a Loan Officer can earn.

While perhaps well intentioned to help protect the consumer - it nevertheless has resulted in what is now commonly called "Unintended Consequences."

I feel sorry for the consumer, as this has caused much confusion - with the bottom line result in making loans more expensive.

Yes - it means rates have typically gone higher simply as a result of this legislation - and that is NEVER good.
Further, loan officers typically cannot reduce their compensation - or pay for their mistakes - like they used to. You have entered a "take it or leave it" world.

I do have a way, though, for you, the borrower, to easily compare one quote to another - as you will soon find that loan officers cannot provide the choices that they used to before this legislation.

Here's what you do. Don't just focus on rate. Look at the entire cost of the loan - which means your interest payments and all the loan costs. Go out, say 5 years. Whoever has the lower cost will be the "better deal."

Oh, and if you are in California - you are fortunate because I have retained the ability to still offer you all the choices you need as a California Mortgage Banker with Ascent Home Loans.

Just contact me at 530-205-9145.

Rick Pelleriti
California Mortgage Banker

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