An article by the Oregonian today states that Parmount Equity Mortgage is coming under scrutiny by both the states of Washington & Oregon.  You know who they are, they have the radio commericals, “Hello, this is Hayes Barnard….”  The allegations are that Paramount Equity was not providing proper disclosure, not lowering rates after borrowers paid discount fees, and offering to pay for the property appraisal but then possibly fluffing other fees.  We’ve heard of all of these before, but with the events of the last year I’m certainly not surprised to hear that another mortgage lender is under the microscope.

The more important message, though, dear borrower, is to fully understand all of your fees.  Ask your loan broker to go over each and every fee.  Take your good faith estimate to your accountant and ask if the fees are within reason.  Accountants see lots of HUD statements, as your closing costs are tax-deductible.  If your broker can’t come up with an explanation for a fee, well, negotiate.  AND, understand your fees as soon as possible.  Get pre-approved before you start  house shopping, and if the loan broker isn’t completely transparent with their fees & procedures, find another loan broker.  Once you have a house picked out and are negotiating an offer, the last thing you need to worry about is whether your loan broker is gouging you.

As always, if you need a referral to a trust worthy loan broker, visit my “Resources” page at my website.

Opinions expressed in this article are the opinions of author, and not to necessarily the opinions of Meadows Group Inc.
All rights reserved on all original content, non-original content is given credit | Michelle Berry | 2009