Mortgage Lending Industry Update

Guest Post by Jeff Daniels, Branch Manager, Primary Residential Mortgage, Inc.

You don’t have to be in the real estate industry to know we are in a tough market. Government is making changes to compliance in the lending industry that is slowing down the process. We keep hearing about “bank reform”, but oddly enough the reins keep getting tighter and tighter on lending.

Recently, Georgia announced that they banned “yield spread premiums” on all loans. This is great news for lenders but bad news for brokers. This announcement basically shut down all the brokers in Georgia and I’m sure other states will follow.

This ultimately means fewer options for consumers to qualify for loans and the possibility of potential higher rates due to less competition in the market place. Competition is healthy. It ensures that consumers receive a higher level of service and be given the opportunity to shop and seek fair rates and fees from the lender or broker they choose.

Jeff Daniels



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