Mortgage Broker Fee Agreement And Disclosure: Fill & Download for Free

Mortgage Brokers have a predetermine agreement with each lender they work with. A borrower would sign a disclosure agreement explaining the fee for their service. Typically 1–2% of the loan amount.

I prepared my real estate license exam with the test prep at californiarealestatelicenseschool.comtheir practice tests covered all the following areas that you will see in the California Real Estate Exam Salesperson or Broker:Property Ownership and Land Use Controls and RegulationsLaws of Agency and Fiduciary DutiesProperty Valuation and Financial AnalysisFinancingTransfer of PropertyPractice of Real Estate and Disclosures (Includes Specialty Areas)Contractsmore info here: califorinia-real-estate-exam.business.siteNOTE: To pass the salesperson examination and become eligible for a license, examinees must correctly answer at least 70 percent of the questions on the test. Property Ownership and Land Use Controls and Regulations (approximately 15% of exam)Classes of PropertyProperty CharacteristicsEncumbrancesTypes of OwnershipDescriptions of PropertyGovernment Rights in LandPublic ControlsEnvironmental Hazards and RegulationsPrivate ControlsWater RightsSpecial Categories of LandLaws of Agency and Fiduciary Duties (approximately 17% of exam)Law, Definition and Nature of Agency Relationships, Types of Agencies, and AgentsCreation of Agency and Agency AgreementsResponsibilities of Agent to Seller/Buyer as PrincipalDisclosure of AgencyDisclosure of Acting as Principal or Other InterestTermination of AgencyCommission and FeesResponsibilities of Agent to Non-Client Third PartiesProperty Valuation and Financial Analysis (approximately 14% of exam)ValueMethods of Estimating ValueFinancial AnalysisFinancing (approximately 9% of exam)General ConceptsTypes of LoansSources of FinancingGovernment ProgramsMortgages/Deeds of Trust/NotesFinancing/Credit LawsLoan BrokerageTypes of Loan OriginatorsTransfer of Property (approximately 8% of exam)Title InsuranceDeedsEscrowTax AspectsSpecial ProcessesTransfer through Court SupervisionTypes of VestingPractice of Real Estate and Disclosures (Includes Specialty Areas) (approximately 25% of exam)Trust Account ManagementFair Housing LawsTruth in AdvertisingRecord Keeping RequirementsAgency SupervisionPermitted Activities of Unlicensed Sales AssistantsDRE Jurisdiction and Disciplinary ActionsLicensing, and Continuing Education Requirements and ProceduresCalifornia Real Estate Recovery FundGeneral EthicsTechnologyProperty ManagementCommercial/Industrial/Income PropertiesSpecialty AreasTransfer Disclosure StatementNatural Hazard Disclosure StatementsDisclosure of Material Facts Affecting Property ValueNeed for Inspection and Obtaining/Verifying InformationReportsServicing Diverse PopulationsContracts (approximately 12% of exam)GeneralListing AgreementsBuyer Broker AgreementsOffers/Purchase ContractsAgreementsPromissory Notes/SecuritiesPurchase/Lease OptionsAdvanced FeeCalifornia Real Estate Exam Prep is a series of Practice Exam, Questions and answers and flashcards to study for the California Real Estate License Exam and it is available at https://californiarealestatelicenseschool.comHistoryThe California real estate exam prep is designed for the most current California Real Estate License Exam Salesperson & Broker, this is an online practice exam available to the public and it is the most up-to-date exam prep material for the California Real Estate License Exam that you can find on the market.Features Covering all areas of the current California Real Estate License Exam with practice tests ( questions and answers ) and exam prep on topics such as:Property Ownership and Land Use Controls and Regulations Laws of Agency and Fiduciary Duties Property Valuation and Financial Analysis Financing Transfer of Property Practice of Real Estate and Disclosures (Includes Specialty Areas) ContractsClasses of Property Property Characteristics Encumbrances Types of Ownership Descriptions of Property Government Rights in Land Public Controls Environmental Hazards and Regulations Private Controls Water Rights Special Categories of LandLaws of Agency and Fiduciary Duties Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents Creation of Agency and Agency Agreements Responsibilities of Agent to Seller/Buyer as Principal Disclosure of Agency Disclosure of Acting as Principal or Other Interest Termination of Agency Commission and Fees Responsibilities of Agent to Non-Client Third PartiesProperty Valuation and Financial Analysis Value Methods of Estimating Value Financial AnalysisFinancing General Concepts Types of Loans Sources of Financing Government Programs Mortgages/Deeds of Trust/Notes Financing/Credit Laws Loan Brokerage Types of Loan OriginatorsTransfer of Property Title Insurance Deeds Escrow Tax Aspects Special Processes Transfer through Court Supervision Types of VestingPractice of Real Estate and Disclosures Trust Account Management Fair Housing Laws Truth in Advertising Record Keeping Requirements Agency Supervision Permitted Activities of Unlicensed Sales Assistants DRE Jurisdiction and Disciplinary Actions Licensing, and Continuing Education Requirements and Procedures California Real Estate Recovery Fund General Ethics Technology Property Management Commercial/Industrial/Income Properties Specialty Areas Transfer Disclosure Statement Natural Hazard Disclosure Statements Disclosure of Material Facts Affecting Property Value Need for Inspection and Obtaining/Verifying Information Reports Servicing Diverse PopulationsContracts General Listing Agreements Buyer Broker Agreements Offers/Purchase Contracts Agreements Promissory Notes/Securities Purchase/Lease Options Advanced FeeReferences:Real Estate Test Prep Law Enforcement Test PrepCalifornia Real Estate ExamCalifornia Real Estate ExamCalifornia Real Estate ExamEveripedia

Answering for consumers located in the United States.We made a lot of progress by passing The SAFE Mortgage Licensing Act of 2008.Mortgage loan originators must pass a background check, including a set of fingerprints, must prove that they are financially responsible, they must take a pre-licensing class and pass a brutal exam. There must be no felonies of any kind within 7 years of licensure, and if the felony was a financial-related felony, the person will not ever be able to obtain an LO license. Some states have added a “financial-related gross misdemeanor.” They must continue to meet the requirements of holding that Loan Originator license every year. You can check out the loan originator’s 10 year employment history here, along with any public records tied to a state regulatory action against the LO.With that said, there is no way to completely, 100% eliminate all predatory loan originators in the United States.My reasons:If an LO is unable to obtain a license for a number of reasons, for example, they were convicted of, or plead guilty to mortgage fraud and are a financial felon, they will easily recruit someone else to pass the test and get licensed, such as a spouse, lover, parent or child. On the flip side, many states will allow A MORTGAGE FRAUD FELON to obtain a real estate license. So the felon becomes a real estate agent and the loan is done by the felon’s lover.Conflicts of interest are ever present in the mortgage industry, and at this point, there are only a few instances where conflicts of interest must be fully disclosed to all parties.Loan originators are mostly paid 100% commission and earn nothing until the loan closes. This is a good way to motivate sales people to get off their butts and go out into the world and make sales calls on Realtors and ask for referrals. Unfortunately, this also motivates LOs to just close lots of loans, whether or not the loan is in the best interest of the consumer. Example: Refi churning. Refinance loan closes and immediately that homeowner starts getting deceptive mail (with many law violations on the mailer) from unethical lenders, encouraging people to immediately refinance again. A certain percentage of people will fall for the bait-and-switch ad, and boom! The unethical loan originator and unethical company has just made more fee income.There will never be enough regulators to regulate every single unethical lender and loan originator in the United States. Government was never meant to be that onerous. There will always be a limited number of regulators to regulate the laws and the conduct of any profession in the U.S. Unethical company owners know this, and will take a calculated risk to violate laws, until caught. When caught, they pay the fine and move on. The fine will often be way too low because regulators do not want to make the fine so high as to have to go back to court if the mortgage company chooses to challenge the fine.The mortgage industry has a secret that everyone knows but no one wants to talk about. This industry employs and protects predators who engage in sexual harassment at work, at business conventions, and also with customers. The women are asked to sign a non-disclosure agreement and are paid off. The men at the top of these companies are protecting those predators because the predators are making money for the company, OR the manager or company owner is related to the predator. Men protect other men in many industries. This is one of them.We can do better:Since I left you with number 4, I’ll address that first. The mortgage industry needs more women at the very top of all mortgage companies, and more people of color, and more people who are bi-lingual. Mortgage companies that are mostly owned, led, and managed by white men will employ loan originators that are mostly white men. This can result in a frat-boy culture, and “group think,” especially if the mortgage company recruits directly from a college campus and fraternities. This is not good for consumers, and not good for the industry, or for the United States.We need to eliminate all non-disclosure agreements with regards to sexual harassment, and make sexual harassment an event that results in immediate termination, and reportable to the state and federal regulators.Change the real estate laws to dis-allow white collar/financial felons to obtain a real estate license in any state.Change the mortgage and real estate laws to require all conflicts of interest to be fully disclosed to all parties.Increase the number of regulators at the state and federal level who regulate mortgage lenders and brokers.Require that the depository banks have their mortgage business regulated by a different entity other than what’s currently going on. FDIC, Federal Reserve, OCC seem to have too cozy of a relationship with these banks. They can barely regulate a monster like Wells Fargo so who is regulating the mortgage divisions at the much smaller regional banks and lenders?Introduce other types of compensation for loan originators that would both incentivize them and also not be tied to loan volume. Here are some ideas. Look at how insurance agents are paid. LOs would be less motivated to “get them to sign on the line that is dotted” every single day, if they were paid residual income each month when the borrower repays the loan on time and as agreed. There would be fewer LOs and they would all make more money. Compensate the LO based on how the CUSTOMER rates the LO, similar to how Redfin compensates real estate agents. Offer a bonus to the LO based on the QUALITY of the loan origination with regard to compliance. Offer compensation based on the loan originator’s LOW DEFAULT RATE on loans originated.Raise the bar on loan originators even further. Require that depository bank LOs obtain a full loan originator license like the non-bank and mortgage broker LOs. Instead of a 3-day class, require more education at the pre-licensing level. Require a high school diploma or equivalent. At this point, you don’t even need a high school diploma to help people with the most expensive financial transaction of a person’s life. I’d be happy with a H.S. diploma requirement! I hope I live long enough to see a community college degree (IN ANY SUBJECT) required.Elevate the relationship between consumer and loan originator to that of fiduciary. This is the highest legal relationship one person can have with another person in the United States. You owe your clients the utmost duty of good faith, transparency, and fair dealings. You can be sued by your client for professional negligence. The SAFE Mortgage Licensing Act of 2008 requires, loan originators, “to the greatest extent possible, to look after the best interests of their customers.” This almost like saying “fiduciary” without using the “f” word. We are making slow progress.There is currently no self-regulatory oversight of ethical conduct in the mortgage lending industry. All codes of ethics written by the Mortgage Bankers Association, Mortgage Brokers Association, Mortgage Whatever Association all give ethics a very light treatment. And there is no one at any of these trade associations holding anyone accountable for violating any code provision. The trade associations take money from the industry and lobby for us, and they do a great job for this industry, but a code of ethics that’s not being enforced is like having no code of ethics at all. No action suggests the mortgage industry does not want to self-regulate the ethical conduct of its members. Why? Because the largest banks and lenders, example: Wells Fargo and Quicken, likely give the most amount of money to these trade groups. The National Association of Realtors Code of Ethics is OVER 100 YEARS OLD. Realtors are one hundred years more ethically developed than mortgage lenders.Any changes will only happen if large banks and lenders can be convinced that change is in THEIR best interest. Loan originators who look after their client’s best interest ought lead to fewer customer complaints. Companies would spend less time and money constantly hiring and training people because the education would be required before obtaining the loan originator license. Loan quality would go up, and if LOs are paid residuals, the LO would be more likely to stay with the company, reducing costs of recruiting.The owners of banks, lenders, and mortgage brokers absolutely do not want to “raise the bar” on what’s required to become a loan originator, or elevate LOs to “fiduciary” status, because they believe they would have to pay loan originators more money, thereby eating into their profits. Large banks and lenders would ruthlessly lobby against this.The winds of change can come from these and other directions:* Another catastrophic economic failure caused by the current system that allows predatory people to obtain jobs as managers and loan originators.*Politicians that understand the housing finance industry’s role in predatory lending in the past, present and future, who have the motivation to work with the mortgage industry to enact slow and steady progress towards further reducing predatory lending.*An “outsider” mortgage bank or lender, who can visualize that looking after the best interests of the consumer is also in the best interests of the mortgage company. A disruptor like what Redfin and Zillow did to real estate in 2005.Thank you for coming to my TED talk.