Profile picture for LarryGoldbeck

Is amortgage lender required by law to charge every borrower the equivalent discount point rate?

  • May 23 2012 - Vallejo
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Answers (5)

Best Answer

I'm not aware of any laws that govern lenders setting equal terms for loan applicants.    There are compensation laws for mortgage brokers that pertain to their agreements with lenders they work with.
  • May 23 2012
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Profile picture for zzroad101
Comp reform requires that lenders set a margin for each licensed branch and that they make the the same margin on each loan. The law allows for a min. and max fee for very small loans or very large loans and also allows borrower paid compensation or lender paid. Sierra Pacific only allows lender paid compensation but some lenders allow only borrower paid, the idea is that consumers all receive the same deal based on the loan type, loan term and credit scores.
  • May 28 2012
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I'm not aware of any laws that govern lenders setting equal terms for loan applicants. 
====================
to expand on that....  as long as the term set isn't due to anything that violates the Fair Housing Act or ECOA. (race, etc)
  • May 23 2012
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Profile picture for CA Direct Lending
Very helpful, Dave.  

Larry, are you talking about an origination fee or a discount point to buy down the rate?  The origination point or fee is income to the broker or lender.  The discount point directly benefits you with a rate buydown and is not income to the lender or a broker.  It is a cost of the interest rate.  
  • May 23 2012
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Profile picture for daveskow
no
  • May 23 2012
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