Mortgage Law

Overview of Mortgage Law

Mortgage Law is an emerging area of law which has already been acknowledged by the Bar Associations of five states (FL, SC, KY, TN, and AL).  Mortgage Law is a sub practice of the Real Estate Law profession in which knowledgeable attorneys use their expertise to guide and protect clients through the mortgage process.  Consumers benefit from the counsel of a Mortgage Attorney in many ways.

Understanding

Disclosure is not the same as understanding.  When applying for a mortgage loan, the government requires the lender provide a number of legal documents to ensure the borrowers understand the different options and costs.  The large number of documents contain terms like APRs and Yield Spread Premiums and make the process all but impossible to understand, benefiting the loan officer.  A Mortgage Attorney will explain these terms in order to educate the Consumer throughout the mortgage process.

Representation

Loan officers do not represent the borrower’s best interest.  Loan officers are independent contractors and do not have the duty to protect consumers.  As a result, the client is often overcharged or forced to pay a higher interest rate than necessary.

By contrast, a Mortgage Attorney legally represents the borrower and is required to put their client’s interests first.  Clients gain protection, peace of mind and counsel they can TRUST.

Commission Free Advice

Borrowers traditionally look to the loan officer to guide them through the mortgage transaction.  However, most Consumers are unaware of the variety of loan programs and that different loan programs pay varying amounts of commission to the loan officer.  Many times the advice Borrowers receive is based upon the commission paid to the loan officer.

A Mortgage Attorney cannot receive any monies, including commissions, from the lender.  Advice is based solely upon the client’s best interests.

Cost

Even the savviest Consumer is unacquainted with the true cost of a mortgage.   Loan officers earn extra fees by “selling” the loan to the Borrower at an interest rate higher than necessary.  These extra fees are called the Yield Spread Premium and can average between $1,000 and $2,500 per mortgage transaction.  The lender (or broker) receives the Yield Spread Premium after closing, and the Borrower is usually unaware this transaction takes place.

By contrast, a Mortgage Attorney returns the financial control to the client.  With the benefit of counsel, Borrowers can make an informed decision regarding their money.  They can either apply the Yield Spread Premium to closing costs or use the YSP to receive a lower interest rate.

It is your money. You should decide how to spend it.