We hear a lot these days about the CFPB (Consumer Financial Protection Bureau). Some of it good, some of it bad – and opinions often depend which side of the political aisle you’re on. But a funny thing happens when you change your viewpoint from “Republican vs. Democrat” to one of “Consumer vs. Financial Institutions.” All of a sudden, the intent of the CFPB comes into focus: Its policies and regulations are designed to benefit the consumer, and to level the playing field between financial entities.
Recalling the not-to-distant economic crisis that the country found itself in a few years back, a new phrase entered the U.S. consciousness: “Too big to fail.” The premise, of course, being that the country could not afford to let certain corporations fail as it would be disastrous to the greater economic system.
What this concept allowed to occur, however, was for large banks and financial institutions to be held unaccountable for taking risks that would have put smaller entities out of business. Certainly, there is a veritable library of books written on this topic that offers every theory and opinion under the sun in support or detraction of this policy.
But for consumers, the bottom line is this: Particularly when it comes to mortgage loans, the Dodd-Frank Act allowed the CFPB to make the business of mortgage lending fair and more competitive among mortgage lenders.
One way that consumers have benefitted from these policies are from the recent actions taken by the Consumer Financial Protection Bureau. This legislation ensures that consumers have access to easily understood – and easily compared – information that they receive from mortgage lenders, as well as many other safeguards.
It’s still not a perfect system. For example, mortgage brokers are limited on how much they can earn from every loan they make – while banks and mortgage bankers are not. But the CFPB’s efforts to restrict banks from monopolizing the mortgage industry (which results in higher rates and fees for consumers) are gaining ground.
What does this mean for home buyers? That they now have the tools needed to make an “apples-to-apples” review of mortgage loan offers. By comparing the fees and interest rates on the Loan Estimate, consumers can now easily distinguish the most cost-effective mortgage product for their needs.
The fact is, once you close your loan, you have an interest rate and a payment – and that’s it. So the only real consideration you need to make while shopping for a loan is finding the best interest rate, with the lowest fees. (Spoiler alert: Premier Mortgage Lending happens to be the home of the true “No Fee Loan” in Las Vegas.)
In today’s more competitive mortgage lending environment, buyers are more likely to get the best loan from a small, local mortgage broker. After all – it costs money to maintain a big office, a huge staff, and a string of executives (those would be your big banks, of course). Conversely – a small, well-run mortgage broker operates on much smaller gross income – and those are savings that get passed along to the borrower. That’s you.
Premier Mortgage Lending is the home of the true “No Fee” mortgage loan. Find out more at our www.KnowBeforeYouOweNevada.com website. Our series of short educational videos explain exactly what you need to know to save big money on your next mortgage loan – and know which questions you need to make sure you ask your next mortgage lender.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.