Ethics and Percentage Earned

Quote:

Originally Posted by fred

Can you compare overage and YSP abuse to retail pricing?

Yes, and I am sure you are smart enough to do this also, aren't you? So I won't delve into that.

Quote:

Originally Posted by fred

Apparently someone feels the general public needs protection from lending practices "used to exploit the borrower's ignorance". Don't you?

If the public needs this protection from lending practices then why don't they get this same protection when purchasing other items. Do you think the general public is only ignorant when it comes to lending practices?

Quote:

Originally Posted by Jorel

Yes, and I am sure you are smart enough to do this also, aren't you? So I won't delve into that.

I don't feel lender abuses can be compared with retail pricing. I am open to reading how you think the two compare. Will you share your viewpoint?

Quote:

Originally Posted by Jorel

If the public needs this protection from lending practices then why don't they get this same protection when purchasing other items.

In what other purchases do you feel the public isn't getting the protection they need?

Quote:

Originally Posted by fred

I don't feel lender abuses can be compared with retail pricing. I am open to reading how you think the two compare. Will you share your viewpoint?

If you don't feel lender abuses can be compared with retail pricing,
I do not believe you would understand my viewpoint. So I wont waist your or my time with it.

Quote:

Originally Posted by fred

In what other purchases do you feel the public isn't getting the protection they need?

I have already covered this in a previous post and believe it to be a waist of time to restate it.

Quote:

Originally Posted by Jorel

I saw two post and thought combining them might be an interesting topic. My industry Mortgage brokering charges anywhere from 1% up to 5%. Either way it is disclosed to the consumer so do you think it is ethical to charge as much as you can as long as you tell the client what you are charging? Stop and think before you answer this one please.

When are you disclosing the charges Jorel?

Ethical =

Quote:

A borrower dealing with an upfront mortgage broker is told what the broker's fee is and is given a choice as to how it is paid -- in cash or as yield-spread premium.

Unethical =

Quote:

The great majority of brokers, however, don't offer this choice because they can make more if they keep the premium to themselves. The borrower may learn about it in the documents he or she receives, but disclosure comes late and it is extremely unclear.

Quote:

Originally Posted by SpeedRacer

When are you disclosing the charges Jorel?

Part of my presentation actually covers yeildspread and how I get paid. I then let them choose how they want to pay me. And explain the pros and cons of each part of it. I believe this builds rapport by explaining the process. However some people are less than interested and I ask them if they would rather have a lower interest rate or prefer to not pay any points. But if you wanted a more direct answer, when I first meet them.

BTW SpeedRacer why do you ask?

Quote:

Originally Posted by Jorel

BTW SpeedRacer why do you ask?

By my standards when you disclose the charges changes the answer to your question; Either way it is disclosed to the consumer so do you think it is ethical to charge as much as you can as long as you tell the client what you are charging?

Timing is everything. Retailers don't tell you the price of the product after you've decided to buy it.

Quote:

Originally Posted by Jorel

My industry Mortgage brokering charges anywhere from 1% up to 5%. Either way it is disclosed to the consumer so do you think it is ethical to charge as much as you can as long as you tell the client what you are charging?

I think you can charge as much as you want. If your customers don't like your prices they can use someone else.

Quote:

Originally Posted by Thomas

I think you can charge as much as you want. If your customers don't like your prices they can use someone else.

I agree, charge as much as you want and let the borrower shop around if he or she doesn't like it. I also agree with previous posters, don't wait until it's too late to let the borrower know what the bottom line is going to be.

Ethics and Percentage Earned

Sales Forum