“They are restricted from charging more than a three percent fee for all loan origination costs, which is hampering the ability of banks to offer mortgages on homes priced between $100,000 and $160,000.”
The law should read “three percent fee or 4,000 which ever is greater and no more than 25,000 in any case.”
Some mortgage originators were charging outrageous fees, but doing proper mortgage documentation which is voluminous.
However, the work involved is more appropriately a flat rate than a percentage.
With the 3 percent limit, on a 50,000 house, you can get paid only 1500 dollars for doing a lot of work. In the slums of Detroit, 3 percent on a 20 K house would be 600 dollars.
AND ONCE AGAIN, IDIOT DEMOCRATS CAN NOT DRAFT A DECENT BILL.
Its not like they sit there and type those papers out by hand. They are largely computer generated.