Profile picture for east2west2013

Lender using another lender to fund loan?

Is it common that a lender will go through another lender to fund your loan? If so, do you receive 2 GFEs and have to fill out 2 loan apps? My original lender says they're a direct lender yet they have to go through another way to fund?
  • November 17 2013 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (10)

This is common amongst mortgage companies and small banks. Do not be worried about this because it is not unusual. Also, one loan application should be all you need. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page.

Good Luck!
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Being a direct lender typically means they will use their own money to fund the loan. They will then take it and sell it to a servicer or Fannie/Freddie/Ginnie directly. Direct lenders also broker loans. My company is a direct lender but we broker all VA loans under a 620 credit score. Does this mean those people are getting a bad deal? No. It just means we broker loans under a 620 credit score. That said, you should only receive 1 application and GFE.
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Brookstone Mortgage
"Focus on your APR."
-------------
Terrible advice!
  • November 18 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Focus on your APR.  http://www.investopedia.com/terms/a/apr.asp  
Your lender may have had issues with his current underwriter or they may be able to get you a better deal by brokering the loan to another bank.  I've even had big banks broker loans because they don't have the best product for the transaction. 
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for knightlight
Under writer got tainted, don't worry. I've had a broker do it for me, no problems.
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

"When you buy a gallon of milk do they disclose profit margin?", says the dairy farmer.

But when you find out the dairy farmer is charging the same thing for a gallon of milk that the local grocer is, on top of the fact that he's charging fifteen dollars a month to store your milk for you, and letting nine other people, plus his family. friends, and stockholders, drink from your milk, and only replacing it if and when you need it, setting up milk vending machines that charge you to get your own milk to drink, etc... it becomes apparent what a greedy bass turd the dairy farmer is, and why you should find as many reasons and ways as possible not to drink milk, or if you must have milk, you might decide to decrease the success of the dairy farmers monopolistic greed-fest, by utilizing the local grocer rather than going straight to the dairy farm, so the dairy farmer doesn't end up owning the whole world you like living in.
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

When you buy a gallon of milk do they disclose profit margin?  What a bank, broker or correspondent lender is making on a transaction has nothing to do with how good the deal is.  If you are not comfortable with the offer shop it...
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The rules for disclosing a yield spread premium, that results from a higher than par rate, don't apply to depository institutions. What are the rate and fees you're being quoted/disclosed? When did you apply?

Is this third party Quicken Loans, by chance?

If this link will work, look at this and then look at the article and it will possibly clarify.

http://varbuzz.com/2013-10/mortgage-brokers-offering-closing-cost-help/
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for east2west2013
Well now, it has gotten suspicious...

You mentioned it would allow them to disguise profits - how so, what should I be looking at?

I received the GFE from my original lender on time, and now less than 2 weeks from closing this '3rd party' asks me to back date and sign disclosures I should've awhile back. This includes a new GFE w a higher origination fee (and probably other things) ... I'm still going through it now as we speak.
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Small Banks often function just like Brokers, but with rules that allow them to disguise profits.

Is that what you're encountering?

One app should suffice and you'll probably get two GFE's that conflict in some way. Thank your Congress! If offended, call your representative and raise HELL!
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.