Terri Cullens Mortgage Article at WSJ

I haven't heard anyone talk about this article. It seems pretty incendiary. The lending industry comes off *very* badly. Does anyone care to come out against Ms. Cullen? http://online.wsj.com/article/SB120293045810166013.html?mod=Fiscally-Fit Here are some quotes: "The loan-origination fee is what lenders charge for their services. Typically, lenders charge an origination fee of one "point," or 1%... [more]

I haven't heard anyone talk about this article. It seems pretty incendiary. The lending industry comes off *very* badly. Does anyone care to come out against Ms. Cullen? http://online.wsj.com/article/SB120293045810166013.html?mod=Fiscally-Fit Here are some quotes: "The loan-origination fee is what lenders charge for their services. Typically, lenders charge an origination fee of one "point," or 1% of the loan amount. (This would be $2,000 on a $200,000 loan.) Generally lenders won't budge on origination fees for new customers -- such fees cover the bulk of their costs. But check with your own mortgage company first before looking elsewhere for better deals: Long-time customers in good standing may find their current mortgage lender willing to reduce or even waive lender costs to avoid losing your business. Administrative fees over and above that one point -- including document-preparation fees, processing fees, wire-transfer and courier fees -- are simply padding the bill. Demand that the mortgage company cover those costs. " "A few lenders still charge rate-lock fees to guarantee the rate quoted to the borrower for a period of time, typically 60 to 90 days. But many lenders offer rate locks free and some even offer free rate "float downs" in case rates decline during the lock-in period. If you're a well-qualified borrower, don't be afraid to ask that these fees be reduced or waived." "But if you purchased your home within the last five years, contact your title-search company and ask if you can have your title-insurance documents reissued. The savings can be as much as half the cost of a new search, or an average of $905 for title-search work and insurance, according to the Bankrate survey." "Mortgage providers often explain away junk fees tacked on at the last minute by claiming that the loan "took more work to approve than we thought it would," says Anthony Kirlew, founder of Consumers Advantage Mortgage, a mortgage broker. Your credit score is another common source of last-minute fees. "They'll claim they had to do extra work to get the loan approved because of your bad credit score, when many times the credit score isn't bad in the first place," Mr. Kirlew says." [less]