http://www.nmlsconsumeraccess.org
The Nationwide Mortgage Licensing system was created as part of the SAFE Mortgage Licensing Act of 2008 and gives all state and federal regulators a way to track loan originators, no matter where they work: Bank, mortgage broker, consumer finance company, credit union, non-bank lenders, etc.
For example, do a search on a company that does a lot of TV or radio advertising like Quicken. You'll see "too many records" and the database will ask you to narrow it down. Just put in any name like "John." Then you'll see all the Johns that work at Quicken in all 50 states. Click on a John. Any John. Now find the little + plus sign that allows you to expand John's employment history.
Chances are you'll find that John use to work at Pizza Hut. Or XYZ Used Car Dealership, Taco Time, Subprime Lender ABC, Subprime Lender DEF, Subprime Lender GHI or maybe you'll get one with former work experience reported as "None." Companies like this recruit ppl who have no clients...because these ppl don't want to work. They want to sit in a cubicle, answer the phone and close you. ABC. Always Be Closing. Get Them To Sign On The Line That is Dotted.
Sites like Bankrate are just lead generation machines, like Lending Tree, and any and all google generated ads on the right-hand side of the search results page. That's why you don't recognize the company names....They aren't located in your town. And they pay a fee to Bankrate or Lending Tree to buy your lead. You are just an object. A sucker. A fish to be hooked. Avoid all lead generation companies.
INSTEAD I highly recommend interviewing a loan originator who is located in YOUR hometown, where reputation is important. The mortgage lending and real estate industry is very small. We ALL know each other.
Just ask Mister Google for some help. Chances are a few interesting prospects will come up. Ask your favorite people for a referral to a competent, ethical, experienced loan originator. Do some research on them before you call them. Run their names through the NMLS....Ask a Realtor you trust who he/she recommends. But don't stop there. Do your due diligence.
Interview:
1) a loan originator at a depository bank where you have your own account.
1a) If you like credit unions, that is also an option.
2) a loan originator who works for a mortgage broker. In many states, these LOs now owe you a higher duty of care v. a bank LO due to the many problems we had with mortgage brokers during the real estate bubble. There are fewer mortgage broker LOs around and the ones that are around now tend to be very good.
3) a loan originator who works for a non-depository lender. Also known as a non-bank lender. This is a company that lends money but does not offer checking and savings.
Now you have some LO names, you've checked them out online....you've run his/her name through the NMLS...look at their facebook page, their twitter feed, their linked in page...Dude, you're on Quora. You want an LO that doesn't even have a google plus account....or whatever social media tool will be popular next week? Go see what he/she is like as a person on social media.
Personally I will want to know in advance if the loan originator with whom I'm sharing the intimate financial details of my life is a bigot, misogynist, right-wing republican wacko who will sign all his emails with "god bless you" so I can make sure to cross him off my list.
And if anybody tells you they can't give you a Good Faith Estimate, tell them they are full of shit and find another loan originator.
If you give your loan originator these five pieces of info, by FEDERAL LAW and that law is called RESPA, the LO owes you a Good Faith Estimate and Truth In Lending Disclosure within 3 days:
Name
income
Social Security Number
Property Address
Estimated Value of the Property
Loan Amount.
If you're shopping for a refinance you have the property address. If you have not yet picked out a home to buy and you're shopping or a purchase money loan, they owe you the GFE once you select the property.
They might try to lie to you and tell you that they will give you a "fees worksheet." If this happens, tell them to fuck off and find a loan originator who is honest. If the loan originator lies at the beginning of the deal, he/she will lie to you throughout the transaction. Or will he/she? Gee it's hard know.
Now get out there and grab the world by the tail and go get yourself a mortgage.
Morever, there is no reason to avoid a "no-name" lender. Just make sure you're working with someone knowledgeable who will take the time to learn your situation and explore different options with you. But "no-name" is not a deal breaker for me. There are over 7,000 mortgage lenders in the U.S. and most of them are not very well known by consumers. Another point to consider is that most mortgage lenders out there are going to fund your loan at closing and then sell your loan in the secondary market, so these are probably not the same folks who will be servicing your loan.
What you do want to keep in mind when choosing a lender is what their expertise is. Mortgage lenders can be very specialized in certain areas of home financing, so choose one that fits your situation. For example, if your home is a condo, there are lenders out there that are better than others at underwriting condo loans.
This is why it is many times preferable to work through a mortgage broker, rather than directly through a lender. Mortgage brokers have relationships with multiple lenders and they know the quirks and specializations of each lender.
Full disclosure, my company, MortgageHippo is a tech-enabled, fully licensed mortgage brokerage firm that guides borrowers through every step of the mortgage process and hires some of the most professional mortgage experts in the field.
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