Upfront Mortgage BrokerŽ Principles
Borrowers seeking a trusted mortgage professional who is guaranteed to operate only in a fair and transparent manner when dealing with borrowers can turn to a member of Upfront Mortgage Brokers Association (UMBA).
Upfront Mortgage Brokers Association is a group of professionals who set an industry example of fair and transparent practices by following a strict process which eliminates, in a way which is firm and verifiable by the borrower, any potential for employing unfair business tactics. Additional information about UMBA can be found on UMBA website www.upfrontmortgagebrokers.org. Helpful educational resources can also be found on www.mtgprofessor.com. A copy of official UMBA Commitment can be viewed here.
How Mortgage Brokers Operate in General
Similar to insurance agencies which sell policies from multiple carriers, and to car dealerships which sell cars made by various manufacturers, mortgage brokers operate through wholesale channels of lenders which are part of their business network. Because of their overall efficiency, competitiveness, and stronger customer orientation, mortgage brokers currently originate about 60% of all residential loans in the United States. Brokers perform an array of costly origination and processing services for which they receive a fee. This fee can be received from the borrower, in which case a broker would be able to offer a lower rate, or from the lender, in which case the broker would offer a rate for which the lender pays a rebate, called Yield Spread Premium, to the broker. Because lenders pay higher Yield Spread Premiums for higher rates, there is a felt incentive for traditionally operating brokers (but only those with failed ethics!) to ultimately settle the borrower into higher rates. Direct lenders and retail banks have incentives to sell higher rates to individual consumers as well, but that is part of another discussion.
How Upfront Mortgage Brokers Operate
Upfront Mortgage Brokers set their fee upfront as they evaluate the nature and complexity of the transaction. Since the fee is established upfront, the broker has no incentive to sell higher rates, because any amount received in excess of the agreed upon fee must be passed back to the borrower and can not be retained by the broker. The Upfront Mortgage BrokerŽ guarantees the fee in writing. Additionally, the borrower will receive lender’s rate lock confirmation showing the Yield Spread Premium, and, upon request, the lender’s wholesale rate sheet which further confirms the amount the lender will pay to the broker for the chosen product and rate. In cases where the borrower wishes to pay the broker’s fee directly in exchange for a lower rate, the broker would offer a rate for which the lender would pay zero in Yield Spread Premium.
The signed UMB Agreement, the rate lock confirmation, the wholesale rate sheet, and the closing documents showing the final Yield Spread Premium are the means which make the fair treatment and transparency firm and verifiable by the borrower. Only professionals who want to earn their fee in the most direct and honest manner while performing valuable services for their clients would agree to such standards. These professionals are members of Upfront Mortgage Brokers Association.
Review Upfront Mortgage BrokerŽ Commitment.
UMBA-based Rate/Cost Estimates
Upon request, Superior Funding Corporation provides several rate/cost combinations in one easy to read estimate. The detailed cost breakdowns include all lender fees, all third party fees, the broker fee for service and the Yield Spread Premium. The estimate typically includes the following options: Reduced Rate Option, where part or all of the broker fee for service is paid directly by the borrower, Standard Rate Option, where the broker fee for service is paid by the lender through the Yield Spread Premium, and Reduced Cost Option, where the Yield Spread Premium covers broker fee for service as well as some of the other costs.
Contact the Company's UMBA Member
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Roman Shulman
(617) 938-3900 x701
(800) 506-5706 x701
Email: umb@sfcorp.net
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Hello,
I am Roman Shulman, President and Founding Partner of Superior Funding Corporation, and a member of UMBA. My priority is to provide my clients with the most competitive terms available, while attending to their needs as if they were my own. I believe you will enjoy working with me, and it will be an honor to offer you the most personal level of service. To contact me, just send me an email or give me a call. I am looking forward to speaking with you!
Sincerely,
Roman Shulman,
Mortgage Advisor
Member of UMBA
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