/24-7PressRelease/ - SAN DIEGO, CA, February 23, 2008 - Troy Hartman is owner/broker of Blue Skies Financial, and got into the mortgage business during its heyday of "exotic" loans. Frustrated by the fact that borrowers were getting talked into these mortgages by loan officers motivated by the large rebates they would receive on the "back end" from the lender, Troy decided to make it policy to charge his clients a standard rate. This way the borrower would be certain they were getting the best wholesale rate possible, and Troy would earn a fair fee for his services. The response to this policy was outstanding, and Troy has built a large referral base as a result.
The big value in using an Upfront Mortgage Broker is in knowing what the commission is that the broker will receive for shopping and packaging your loan. Typically, a broker will receive the wholesale rate from the lender and then mark it up and pass it along to the borrower, with the lender paying the broker directly an amount proportional to how much the wholesale rate was marked up. The borrower never realizes their rate is higher than what they could get if they just paid the broker a flat fee upfront in return for a wholesale rate.
"I feel the Upfront Mortgage Broker model is the 'no-brainer' way to go when shopping for home financing," says Troy, "This model is designed to bring transparency to the mortgage lending process, such that a borrower can shop for the best rate and fee loan without worrying about what is in it for the broker. Upfront Mortgage Brokers have no incentive to pass along a higher rate to the borrower, since the borrower will know the wholesale rate all along. It is similar to knowing the 'invoice' price when shopping for a new car, such that the dealer will only earn a mark-up that is completely disclosed and acceptable to the consumer."
Unfortunately, some people enter the mortgage business for the wrong reason as in any profession. When asked what attracted Hartman to the industry, he stated, "I was attracted to the mortgage brokerage business because of my technical instructing background. Finance can be confusing, and a good broker is capable of explaining the process to the consumer so that they can feel comfortable with such an important financial transaction."
When you get a quote from a UMB it is likely to be higher than the average broker because "the interest rate quote you get from a UMB is unlikely to be the best, because it will be an honest quote. Honest brokers cannot compete with mortgage brokers who ensnare consumers by quoting prices they cannot actually deliver." according to The Upfront Mortgage Brokers Association. However, when the consumer gets a quote from a UMB, the UMB's fee is established in advance, and you can be assured that the information is accurate. Another reason consumers are going to UMB's.
Contact:
Troy Hartman
800-973-9073
http://www.blueskiesfinancial.com
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