Service with Integrity
A Solid Foundation
Associate Mortgage acts as your
representative (agent) in shopping lenders for your Florida home loan or real estate mortgage. For this service we charge a fixed fee, which will be set upfront. Our duty
to you : (1) to shop for the best possible wholesale rates and points ,and (2) pass them through to you, (3) with no markups
or hidden charges.
saving to a consumer from having Associate Mortgage
do their shopping either for a purchase or refinance is very large, especially if they have weak credit. In the "sub-prime" market, price differences
between retail lenders are particularly large.
Of course, all mortgage brokers shop the market for the best deals. What
distinguishes Associate Mortgage is that the benefit accrues to the customer.
What is the difference between
Our Integrity Guarantee & Conventional Mortgage Brokers?
Associate Mortgage is
one who has elected to do business in an up front and fully transparent way. Honest brokers can't compete with
"sunshine blowers" who ensnare consumers by quoting prices they cannot actually deliver. The sunshine blowers have a
dozen tricks they can use to raise the price once they have you on the hook.
The major differences between
Associate Mortgage and a conventional mortgage broker (MB)
1. Associate Mortgage disclose their fees to customers in advance and in writing,
and disclose the wholesale prices (rates and points) passed through from lenders. Customers of
Associate Mortgage pay the broker's
fee plus wholesale loan prices.
In contrast, conventional mortgage
brokers (MBs) add a markup to the wholesale prices, and quote the resulting “retail prices” to customers. Most MBs
reveal their markup only in required disclosures after an application has been submitted.
2. Associate Mortgage's interests are fully aligned with those of customers. They can
thus represent borrowers in shopping for loans. In contrast, MBs shopping the market are often in a conflict situation
with customers. For example:
*The loan type that best meets the customer's
needs may not be the one that allows the largest markup for the MB.
may profit by ignoring customer requests to lock the rate/points, putting the customer at risk.
*MBs often increase their markup on customers who allow the rate/points to
float by not giving them the best available rate (the float rate) when the loan is finally locked.
3. Associate Mortgage's credits customers with any rebates they receive from third parties.
Mortgage brokers sometimes receive rebates from lenders or concessions from home sellers.
Associate Mortgage credits customers for
any such payments that would otherwise increase the broker’s fee beyond what was agreed upon.
In contrast, MBs may or may not credit customers for payments from third
parties, depending on the circumstances.
General Benefits of Associate Mortgage's Integrity GUARANTEED
Lenders offer wholesale prices to brokers
because brokers perform costly services that lenders would otherwise be forced to
provide themselves. The most important is finding, counseling and qualifying borrowers.
Lenders who operate through both wholesale and retail distribution channels quote wholesale rates on fixed-rate mortgages from .25% to .50% lower than retail rates. The average is about .375%, worth approximately 1.5 points. Points are an upfront credit charge expressed as a percent of the loan amount. On an average loan of $250,000, 1.5 points amounts to $3,750.
Associate Mortgage's customers pay a disclosed broker's fee and the disclosed wholesale loan price,
conventional mortgage brokers (MBs) add a markup to the wholesale prices, and quote only the resulting “retail prices”
to customers. Their fee is the markup, plus any payments that they receive from lenders. Most
MBs don’t reveal their fees until required by law -- after an application has been submitted.
Because of the way they price their services,
Associate Mortgage's interests are fully aligned with those of customers. In contrast, MBs are often in a conflict
situation with customers.
At a customer’s request,
Associate Mortgage will disclose their fees to customers in writing
and in advance. Associate Mortgage also discloses the wholesale prices (rates and points) they receive from lenders. Customers of
Associate Mortgage pay the broker's fee plus wholesale loan prices.
1. Associate Mortgage will be the customer's representative or agent,
and will endeavor to act in the best interests of the customer.
2. Associate Mortgage will establish a price for services upfront, in writing, based
on information provided by the customer.
*The price may be a
fixed dollar amount, a percent of the loan, an hourly charge for the Associate Mortgage's time, or a combination of these.
*The price or prices will cover all the services provided by Associate Mortgage. This includes loan processing, for which
customers always pay a broker or lender.
*On third party services, such as an appraisal, ordered by the broker
but paid for by the customer, Associate Mortgage will provide the invoice from the third party service provider at the
customer’s request. Alternatively, Associate Mortgage may have the payment made directly by the customer to the third party
3. Any payments Associate Mortgage receives from
third parties involved in the transaction will be credited to the customer, unless such payments are included in the
Associate Mortgage's fee.
*If Associate Mortgage's fee is 1 point, for example, and
Associate Mortgage collects 1 point from the lender as a “ yield spread premium”, Associate Mortgage either charges the customer 1
point and credits the customer with the yield spread premium, or charges the customer nothing and retains the yield
4. Associate Mortgage will use his best efforts to
determine the loan type, features, and lender services that best meet the customer's needs, and to find the best
wholesale price for that loan.
5. The wholesale prices from
which Associate Mortgage's selection is made will be disclosed at the customer's request.
6. When directed by the customer, Associate Mortgage will lock the terms (rate,
points, and other major features) of the loan, and will provide a copy of the written confirmation of the rate lock as
soon as it has been received from the lender.
7. If a customer
elects to float the rate/points, Associate Mortgage will provide the customer the best wholesale float price available to that
customer on the day the loan is finally locked.
8. Associate Mortgage
will maintain a web site on which its commitment to its customers is prominently displayed, along with any other
information Associate Mortgage wishes to convey.
For a copy of the signed
Integrity GUARANTEE signed
by Elise Altergott please
Page Updated: 07/31/2007