We at U S Loans Mortgage LLC are proud to be
UpFront Mortgage Brokers(R)
and here is why!
The UpFront Mortgage Broker ® (UMB) concept was conceived by Jack Guttentag, the nationally
syndicated columnist and well-known expert on mortgage loans. Professor Guttentag
developed the idea as a result of his experience as a mortgage advisor to consumers. His website contains
information on UMBs and other mortgage related topics and can be found at www.mtgprofessor.com
There are major differences between a UMB and a conventional mortgage broker:
UMBs disclose their fees to customers in advance and in writing, and
disclose the wholesale prices (rates and points ) passed through from lenders.
Customers of UMBs 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.
The UMB's Interests are fully aligned with their 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:
UMBs credit customers with any rebates they receive from third parties.
Mortgage brokers sometimes receive rebates from lenders or concessions from home sellers.
UMBs credit 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.
Most consumers are in the market for a mortgage loan only a few times in their life,
and have limited time to learn the rudiments, never mind the many nuances, of an
extremely complex transaction. The basic nature of the mortgage process allows non-UMBs
the opportunity to “mark up” the interest rate and/or increase the fees.
The net result is many consumers end up paying more than they should for a mortgage loan.
There is no guarantee that a consumer using a UMB will obtain lowest rate or lowest fees.
But, consumers who utilizing a UMB will have the best opportunity to obtain the lowest price for a mortgage loan.
For more details, go to www.upfrontmortgagebrokers.org