This could take a while…
Suffice it to say, the world of mortgage finance has changed DRAMATICALLY since the summer of 2008. The world of mortgage finance used to mean that most every lender had access to most every lending product meaning any lender could do almost any loan.
Not any more.
The new world of mortgage finance now operates in a manner where guidelines are VERY strictly enforced and different banks tend to work with a different level of ‘willingness’ depending on the market segment (usually dictated by exposure in those segments….many times based on exposure in other markets.) While most lenders treat single family non-jumbo conforming loans similarly, they differ in the more niche/specialty markets. Niche markets such as condo lending, lot loans, doctor loans, investor loans and 2nd home purchases now have fewer players and more pretenders and knowing the difference can make a huge difference in time and effort.
Adding to the doubt and confusion provided by epic market shifts, you can now toss the recently passed Dodd-Frank into the mix. The bill was intended to create an atmosphere of disclosure and transparency that many view as not existing towards the end of the bubble. Instead, it has created more regulatory requirements at time when lenders are already dealing with rampant foreclosure, a foggy loan modification and short sale process and issues the ‘Robosigning‘ debacle…not a good thing.
The bottom line is that more diligence needs to be undertaken by the individual borrower to make sure that the loan product being used is the correct one and best priced. Going to one lender for all of your loan needs is not the best practice any longer. You need to look around more.
