“In the Future I Will No Longer Be Able to Serve All My Clients Equally”

Many including myself have written about the forced Dodd-Frank regulations that will go into effect 1/14/14. One of the regulations has to do with the maximum total fees that can be charged on a mortgage. If you used 3% on a $200,000 mortgage, using $6,000 to cover all fees wouldn’t be a problem, but when you have a $100,000 mortgage is not likely that $3,000 will cover all mortgage related fees.

I have always prided myself in the fact that I treat all clients equally no matter what the loan size was. Unfortunately, in the future there will be loans that I will no longer be able to do.

Think about, all attorney and title fees, recording fees, appraisal, lender fee and I need to get paid as well.

Previously, as a result of Dodd-Frank, we had to establish a set fee that we charge all clients, no matter what loan size. No matter what, we can’t discount that fee to anyone, so out of all the fees that I mentioned above, who is going to be willing to cut their fees to make a smaller mortgage work? That’s right, NO ONE.

I have read and been told that Dodd-Frank was necessary, because the consumer needs to be protected. Protected from whom? Consumers in areas that home values are below National averages are going to be discriminated against, as no one will be able to keep doing their mortgages.

I wonder if the real estate industry is next, as to limiting what you can charge. I can tell you the mortgage industry is not part of a free enterprise system, because according to Dodd-Frank, the consumer is not smart enough to make good decisions.