We’re hearing sporadic cases of banks giving their turn-down business to subprime lenders–without the client knowing that another lender is working on their deal.
The banks may get “finders fees” for sending declined customers to partner lenders, but there is a downside for the homeowner. The rates, terms, and choices offered by the bank’s “partner” lenders will often be worse than if the client instead consulted a mortgage planner after getting turned down.
Keep this in mind if you’re declined by a bank and get another offer from an affiliated lender.
Chalk another reason up on why you can’t trust banks. They are out for profit, and not to help people. Just like every single other for-profit business on the planet. Just as you don’t trust how AMAZING those products are on ‘infomercials’ you should also not trust your bank to have your best interests in mind.
As Thomas Jefferson /1743- 1826/ said ” I believe that banking institution are more dangerous than standing armies …if the people ever allow private banks to control the issue of currency…the banks and corporations that will grow up around them will deprive the people of their property….”
Things are coming together… looking at the private corporation called “Federal Reserve” which is as Federal as Federal Express. The Corporation keeps making it’s own policy and it is virtually by no regulation by the US government.
A bank answers to its shareholders.
A mortgage planner answers to the client.
Conflicts can occur in both cases but here’s the difference. A professional mortgage planner isn’t forced to make money with limited products. They have hundreds of mortgages to choose from. By default, that mean’s there’s less chance their clients will be stuck with an inferior product.