Dodd-Frank and Consumer Protection
Dodd-Frank – Snodd-Tank…
Hire an RMLO on a deal by deal basis and get on with it! If the RMLO can’t
explain how he’s going to keep you compliant, fire him and get a new one!
I used to not have closing costs. Now I do. Guess how much it costs?
Guess who gets to pay for it? You guessed it! …it costs the BUYER…and it costs him more than it costs me!
I made closing costs a profit center!
The RMLO costs me $450 because of my volume. I charge $1, 000 to my buyers because that’s what the RMLO wanted to charge me BEFORE my volume discount. I have to pay the $450 up front.
I look at it like a 401k with someone matching me to the tune of 69.25%…I put in $450 and the buyer pays me back $1, 000 amortized @ 10.5% over 20 years. What a deal! I’d do it every day! 100 times a day if I could!
How’s that for consumer protection? They don’t want to protect the entrepreneurs who risk it all, move products all over the nation, and provide affordable housing, but you will protect people that can’t honor their dinged named? That just Donkey Dukie!
Well I’ve got a news flash.
Yep, consumer protection ALWAYS screws the consumer! – PERIOD! Instead of screwing just the stupid consumers, the law makers spread the losses out over all the consumers (so all the buyers get screwed just a little).
In another consumer protection move recently, Legislators, in their infinite wisdom, passed a law that cut my late fees from 10% to 4%. So, you think I just swallowed that crap? Nope!
Now I don’t just collect PITI, I now charge PITIE…
ESCROW COLLECTION FEE
Yep! I added $25 to everybody’s payment, whether their late or not!
Turns out, I make way more than the 10%…and I can count on it! The extra revenue will actually pay for my whole bookkeeping/collections department in 100 transactions (Less than 2 years at my volume).
Wealth comes from chaos!
I’m not praying for a recession, in fact it’s quite the opposite, but when
there is another recession…I bet we make a ton of money.
So hone your craft. Get your private lenders lined up.
Establish your system.
Luck happens when preparation meets opportunity.