{"id":3368,"date":"2008-07-16T21:04:14","date_gmt":"2008-07-17T04:04:14","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3368"},"modified":"2008-07-16T21:04:14","modified_gmt":"2008-07-17T04:04:14","slug":"is-hyper-transparency-a-cover-for-mediocrity","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3368\/is-hyper-transparency-a-cover-for-mediocrity\/","title":{"rendered":"Is Hyper-Transparency A Cover For Mediocrity ?"},"content":{"rendered":"<p><strong>Which one of these loans is better?<\/strong><\/p>\n<p>A- Loan docs at 6.5% with 1 point cost, disclosed at 6.5% with 1 point cost 30 days earlier&#8230;OR&#8230;<\/p>\n<p>B- Loan docs at 6.5% with 1 point cost, disclosed at 6.25% with 1 point cost, 30 days earlier,\u00a0 but the originating broker negotiated the 1 point cost before application ?<\/p>\n<p><strong>There is more than one correct answer:<\/strong><\/p>\n<p>If you said A, you appreciate integrity of expertise and execution. You understand that the originating broker stuck her neck out at quote time and delivered on her promise, regardless of the changes in underwriting and market fluctuation.\u00a0 She assumed the interest rate risk and underwriting risk of the loan after reviewing a borrower&#8217;s application, supporting documentation,\u00a0 and credit report.\u00a0 She may have earned an extra .5% by properly executing the rate lock (because she subscribes to MBS pricing)<\/p>\n<p>If you said B, you appreciate the integrity of hyper-transparency in lending.\u00a0 While the originating broker may have made some mistakes in lock execution and underwriting analysis, he did act in the borrower&#8217;s best interest and collected only what he negotiated.<\/p>\n<p>If you said that neither were acceptable, you probably haven&#8217;t had a transaction close in the past 8 months.<\/p>\n<p><strong>Which will you choose as the better customer experience?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which one of these loans is better? A- Loan docs at 6.5% with 1 point cost, disclosed at 6.5% with 1 point cost 30 days earlier&#8230;OR&#8230; B- Loan docs at 6.5% with 1 point cost, disclosed at 6.25% with 1 point cost, 30 days earlier,\u00a0 but the originating broker negotiated the 1 point cost before [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-3368","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1619,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1619\/hard-money-it-aint-stupid-money\/","url_meta":{"origin":3368,"position":0},"title":"HARD MONEY:  It Ain&#8217;t STUPID Money","author":"Brian Brady","date":"July 2, 2007","format":false,"excerpt":"Hard money is not stupid money. Pragmatic underwriting guidelines are followed so as to insure the principle that the private mortgage really is a temporary loan, designed to solve rather than to perpetuate the underlying problem. I attempted to define this niche in one of my first posts on Bloodhound\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":866,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/866\/hard-money-life-as-a-legal-loan-shark\/","url_meta":{"origin":3368,"position":1},"title":"HARD MONEY:  Life as a Legal Loan Shark","author":"Brian Brady","date":"January 7, 2007","format":false,"excerpt":"Loan broking in the private mortgage marketplace can be the most rewarding sector of the lending. I have helped families who faced foreclosure due to unforeseen negative events. I've watched a businesswoman land a huge contract because she could access quick capital. I've beamed with pride as a property investor\u2026","rel":"","context":"In &quot;Enduring Interest&quot;","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1682,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1682\/mortgage-fraud-did-you-do-it\/","url_meta":{"origin":3368,"position":2},"title":"Mortgage Fraud:  Did You Do It?","author":"Brian Brady","date":"March 5, 2008","format":false,"excerpt":"Mortgage fraud seems to be the hot topic, today. I attended a party this weekend where I was pelted with questions and varying opinions about the topic. Many came from the legal crew, a few from bankers, but most were from worried consumers. The former two groups scared the crap\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17763,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17763\/real-estate-agents-may-work-against-buyers-interests-with-shortened-contract-contingencies\/","url_meta":{"origin":3368,"position":3},"title":"Real Estate Agents May Work Against Buyers&#8217; Interests With Shortened Contract Contingencies","author":"Brian Brady","date":"January 22, 2021","format":false,"excerpt":"If you are reading this, you are probably a real estate agent or broker.\u00a0 Most of the people who read Bloodhound Blog are industry folks rather than consumers.\u00a0 Consumers DO read Bloodhound Blog but, all in all, our audience is mostly comprised of the industry grunts who show or list\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11580,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11580\/will-pre-approval-letters-be-banished\/","url_meta":{"origin":3368,"position":4},"title":"Will Pre-Approval Letters Be Banished?","author":"Brian Brady","date":"March 17, 2010","format":false,"excerpt":"Score one more screw up for the Government-Banking Complex...and watch mortgage brokers thrive because of it. Andrew Duncan of Keller Williams in Tampa, FL reprinted a Mortgage News Daily story: As part of the changes to the Real Estate Settlement Procedures Act, borrowers can no longer shop for a home\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":463,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/463\/blogoff-post-86-ask-the-broker-what-does-pre-qualification-mean\/","url_meta":{"origin":3368,"position":5},"title":"Blogoff Post #86: Ask the Broker: What does pre-qualification mean&#8230;?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is a question I'm hearing every day right now:What does pre-qualification mean?Why am I hearing that question? Because I'm representing the seller in a house that is not closing, day after day. So what does pre-qualification mean? Nothing. What does loan qualification mean? It means the buyer has paid\u2026","rel":"","context":"In &quot;Ask the Broker&quot;","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3368"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3368\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}