🚀 go-pugleaf

HMMmm, I wonder why someone keeps canceling this post?  :-)

Ask the guy on the phone "Are you licensed by the California Department of
Real Estate?"

99% chance s/he will say something like, "Of course WE are licensed by the
DRE!"  --to which I would respond, "Well of course there's a broker
affiliated with your outfit, but I am asking if *you personally* are
licensed --because anybody who re-fi's my house better be!"

Check 'em out online at http://www.dre.ca.gov/licstats.htm  It's EASY!

A DRE license is not strictly necessary for *all* loan origination, but most
of the people doing it don't know when it is or isn't.  There's an alarming
amount of loan fraud going on here in California (forging signatures of
licensed loan officers, forging notaries, etc.).  I've seen it! [1]

Check 'em out before giving your social security number! With your SSN they
lock in your interest rate with a particular lender (bank) and then you're
stuck with that broker unless you find one who can lock you in with a
different lender. Resist pressure until you check them out!

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If you really like to make people squirm, say, "I understand that your fee
is $1500 [or whatever it is] and that you charge no points on the front, but
how many points do you make on the BACK, i.e., WHAT'S YOUR REBATE FROM THE
LENDER?  I won't sign "docs" until you fax me a copy of the interest rate
LOCK-IN CONFIRMATION."  That's ONE place you won't be hearing from again!

They make their money two ways:

1)  Fixed fee (and possibly points "on the front," i.e., that you know
about); and

2)  Rebate from the lender (i.e. points "on the back" that they have no
intention of telling you about).  This is where they *really* make their
money.

If you are already in the process, demand a copy of that lock-in
confirmation or else refuse to sign "docs"!  The lock-in confirmation sheet
from the bank plainly states how much of a rebate the broker's getting from
the lender.

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If you make a refi inquiry on the web, that site just sells your contact
information to the people subscribing to their service.  That's why you will
get calls from different people for a long time.

[1]  The DRE can't catch these crooks because they have no license to
revoke!  If you rat on them to the DRE, tell the names and the address where
they work, the unlicensed ones scram before the DRE visits!  "Who?  There's
no one by that name here!"  --that kind of sh**.