Unethical Practices by Mortgage Brokers Are Not Considered Illegal, Warns Consum 

Unethical Practices by Mortgage Brokers Are Not Considered Illegal, Warns Consum

June 14 /PRNewswire/ -- According to the NAHB. over a million homes are sold in this country every month. And every month. tens of thousands of unsuspecting homebuyers are legally swindled by unethical mortgage brokers. Karen and Josh. a self-employed couple.000 mortgage. They hired a mortgage broker that told them he would charge a 4% origination fee because of the "complexity" associated with the deal due to their self-employment status. Had they gone through with the transaction.000 in origination fees alone. Fortunately for them. they found another broker who truthfully told them that it wasn't such a complicated deal and completed the transaction for a 1% origination fee.000. She also secured them a lower interest rate. How can there be such a huge discrepancy between the two brokers' fees and is this legal? According to RESPA. a Federal Law enacted to protect consumers in real estate transactions. as long as mortgage brokers reveal the origination fees they charge. it is perfectly within their right to do so. "Just because it's legal doesn't mean it's ethical." says Consumer Advocate. who is also a Mortgage Reduction Expert. Bestselling author. and the Founder & President of American Mortgage Educators. According to Gill. being charged exorbitant fees is just one of the unethical practices that tens of thousands of uninformed home loan borrowers fall victim to every day and the laws are simply not there to protect them. Consequently. he has instituted a Lobbyist program to build a grass roots consumer revolution to put pressure on legislators to do more for borrowers. Gill is also asking the media for help in bringing attention to this problem because it's an epidemic affecting millions of people. Meanwhile in another controversial move. he is asking industry professionals and the public in exposing unethical mortgage brokers and real estate agents on his website MortgageFreeUSA. Gill says. "The only people I upset in the mortgage and real estate industries are the unethical ones. The rest actually want me to get rid of these elements because they give everyone a bad name." (Information and resources. including Federal Laws. are also available for homebuyers and borrowers to educate and protect themselves at MortgageFreeUSA).





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