Myth #11: Dodd-Frank protects the borrower from getting ripped off
They may look like your favorite mortgage brokers but they served as chairman of the House Financial Services Committee. The duo behind the famous Dodd-Frank act that curbed compensation abuse and modified financial regulation. Don’t get me wrong they meant well and when they started out putting this whole thing together they got a bunch of mortgage experts that supposedly guided them through it.
But the bottom line is that they had no idea what they were doing. They modified the paperwork and curbed compensation to an extent but left so many things still unanswered. They fixed one thing and left others a mess. Afterward Barney Frank retired so you couldn’t ask him any related questions.
Do you still have Loan officers controlling the interest rate? Yes and its worst than ever
Do you still have Loan Officers controlling the closing cost? Yes indeed
Do you still have Loan Officers making a higher commission for selling a higher rate? Unfortunately, you do and that is your biggest problem.
So it doesn’t matter what they did, LO’s can still screw you (not saying they will but CAN).