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300 quotes and a Nasty One takes 1st Place

Profile picture for Georgia Loans
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 3777
Zillow All-Star

Since January 2009

So I wondered how a consumer would sort 300 quotes and I started with APR. To my surprise, the quote with the lowest APR has some issues. This request is for $417K, $1.755M Value ( 23% LTV ) 798 score, a lay down conforming loan. But, the quote with the lowest APR is an FHA 5/1 Arm with a rate of 5.625%. There are 3 reasons this is #1, the CMT index, the low 1.75% margin, and he failed to add monthly mortgage insurance ( this is happening a lot on Zillow ). Aside from that manipulation, this quote is an insult to any borrower, not to mention this borrower who has 1.3 million dollars in equity ( most likely not stupid ).
Origination - $6255 ( can not collect more than 1%/ $4170 on an FHA loan )
Discount - $6943 ( collecting discount on that rate ? )
YSP - I have several lenders that would pay 3 plus points, so 3 pts = $12,510
App Fee - $295 - Has the .... to charge an app fee on top of all that
So the total take on that adds up to $25,733,  6.17%. 
Touts 29 years experience but quotes a loan with monthly mortgage insurance on top of $7297 UFMIP at 23% LTV, with a rate 1.5% over par, and predatory fees.  
David, your thoughts?
 
Lowest APR
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August 14 - US

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August 14
Profile picture for Chris Corica
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 926
But the "True Cost" says this is the least expensive loan so it MUST be True.........right? On a serious note, the true cost concept is a good idea but at this point I don't feel the technology has been able to live up to the intention's of the developers. Too many flaws in the system right now and we all know where good intentions lead us. Clay's link is one of many examples as to why the true cost needs to be shelved until the kinks are worked out.
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August 15
Profile picture for John Paunan
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 981
Exactamundo Clay!  Where's David?  This is substantive question that deserves a proper response.  Besides, I want to see the list of black and white, sunglass pics to grow.  Though, it looks like I cropped too much of my pic; I want it to be a true homage.
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August 15
Profile picture for Ken Kopper
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 1546
Zillow All-Star

Since January 2009

Wow!
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August 15
I can't image this LO getting anything but negative response to his quotes and he's not going to close any loans from his rates/ pricing.

I'm glad we can flag his quotes and self -police sub-par quotes.
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August 15
Profile picture for Chris Corica
Mortgage Lender

Lender rating

5.0/5.0

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Can you hear me now?
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August 15
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August 15
Profile picture for Gregorio Denny
Mortgage Lender

Lender rating

5.0/5.0

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Since January 2009

What's is going on here ... this is just crazy!
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August 15
Profile picture for Bud Smoker
Contributions: 52
Zillow All-Star

Since September 2009

Hey Now! GVD, you are right, this is Crazy Fingers!!
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August 15
Profile picture for John Paunan
Mortgage Lender

Lender rating

5.0/5.0

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What's crazy?  I don't see anything out of the ordinary...
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August 15
Profile picture for Gregorio Denny
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 3685
Zillow All-Star

Since January 2009

"I don't see anything out of the ordinary... "

I don't see anything at all ... Who turned out the lights? Why is it so dark in here? 
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August 15
Profile picture for Georgia Loans
Mortgage Lender

Lender rating

5.0/5.0

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Since January 2009

300 quotes, then someone felt the need to get their quote in a day later, now 301 quotes. 
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August 15
Profile picture for jcaf1918
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 2108
Zillow All-Star

Since January 2009

 Hippies (lowballers).They're everywhere. They wanna save the earth, but all they do is smoke pot and smell bad.
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August 16
Profile picture for Paul Mondello
Mortgage Lender

Lender rating

5.0/5.0

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Contributions: 1352
Zillow All-Star

Since September 2009

ah, reflections of not so long ago conversations with the internet mortgage lead salesman... "They only get sold to 3 other loan people, swear..." never was the case...worse the further into the game it got past the refi boom the more common it became that when you got a hold of a mortgage shopper they would scream at you over the phone "Your the 20th lender that has called me!!!!" that's kinda like this is becoming...
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August 16
 

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