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 TMG Finance is proudly committed to being an Upfront Mortgage Broker
What is an Upfront Mortgage Broker?
An Upfront Mortgage Broker is one who has elected to do business in an upfront and fully transparent way. Upfront Mortgage Brokers quote all fees in advance by providing full disclosure of all information which may materially affect the loan cost (fees, points, lender rebates, quoted interest rates and lender wholesale interest rates).
What's the advantage of using an Upfront Mortgage Broker?
- An Upfront Mortgage Broker will be the customer's agent and representative, and will endeavor to act in the best interests of the customer.
- An Upfront Mortgage Broker 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 percentage of the loan, an hourly charge for an Upfront Mortgage Broker's time, or a combination of these.
The prices(s) will cover all the services provided by an Upfront Mortgage Broker, including loan processing.
On services ordered by an Upfront Mortgage Broker but paid for by the customer, such as an appraisal, an Upfront Mortgage Broker will provide the invoice from the service provider at the customer's request. Alternatively, an Upfront Mortgage Broker may have the payment made directly by the customer.
- Any payments an Upfront Mortgage Broker receives from third parties involved in the transaction will be credited to the customer, unless such payments are included in an Upfront Mortgage Broker's fee.
For example, if an Upfront Mortgage Broker's fee is one point, and an Upfront Mortgage Broker collects one point from the lender as a “yield spread premium,” an Upfront Mortgage Broker either charges the borrower one point and credits the borrower with the yield spread premium, or charges the borrower nothing and retains the yield spread premium.
- An Upfront Mortgage Broker will use 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.
- The wholesale prices from which an Upfront Mortgage Broker's selection is made will be disclosed at the customer's request.
- When directed by the customer, an Upfront Mortgage Broker will lock the terms (rate and points) 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.
- If a customer elects to float the rate/points, An Upfront Mortgage Broker will provide the customer the best wholesale float price available to that customer on the day the loan is finally locked.
Dr. Jack Guttentag, The Mortgage Professor and author of the Upfront Mortgage Broker Commitment, publicly encourages all members of the mortgage industry to embrace the business practices of the Upfront Mortgage Broker. He has lots of excellent educational material at his Web site. To check it out click on his logo.
Upfront Mortgage Broker Links
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