California Loan Closing, Points & Fees
Shane Dailey, co-founder
and company president, at his desk. He's a hero to his cat.
California Loan Closing, Points & Fees "Points" are percentage points, so 1 point is equal to 1% of the loan amount. Origination points are charged by the lender for evaluating, preparing, and submitting a proposed mortgage loan. The application fee covers the lender’s cost to process the information on your loan. An appraisal fee is typically paid by the borrower to independently value the property in question, and usually costs a few hundred dollars. We will do our best to keep all points and fees to a very reasonable level. |
I have a cartoon which I commissioned showing a big fat banker on his way to lunch telling his secretary he's going to lunch for a couple of hours and doesn't wish to be disturbed by any pesky mortgage customers.
That's kind of the state of things because the reality is that a lot of people working in the banks are hanging by a limb. To tell you the truth, the banks are not paying very much money to people working there. You know from experience if someone is working where they feel underappreciated and underpaid, their performance is not going to be very good. That is happening at the banks right now because they are getting a flood of customers coming to them for help.
They are getting tons of customers who are in big trouble, that are underwater, they are calling the person who is supposed to be their loan officer. They need solutions and the bank doesn't have solutions for them, so the bank loan officer is getting bombarded at the same time that his or her pay has gone down significantly.
How many funding sources do you folks have?
Mainly banks are now the big lenders. There are a few private sources,
but we don't like to tout them too much because those go on a case by
case basis. We do have private money sources and private sources for investors
as well. We have correspondent lenders which work with the banks. Let's
say they agreed upon certain terms that they are willing to put on the
market for certain clients. We have access to those, where maybe the retail
side of some large bank won't be putting those loans out in their branches.
And of course, there are Fannie Mae and Freddie Mac -- that's who is buying
all these mortgages in this market and that's who we directly underwrite
through. That's usually our process, the direct underwriting goes through
Fannie Mae and Freddie Mac, and they accept those loans with those terms.
How would you guys take care of the rest of the state? Obviously, you will be getting calls from Eureka to San Diego and farther away than that. Somebody calls up from Eureka or Redding or Chico or Sacramento or the Bay Area -- how do you take care of those people?
Shane: Taking care of our customers from all over the state is very simple. We have been doing business for years outside of the Los Angeles market. In actuality, we get customers from the entire United States. We have narrowed our specific region down to California so we can focus on our home state clients, but when it comes to helping our clients, we don't need to be in their neighborhood. We can do everything by phone, fax, email, and scanning. We have a huge network of lenders, appraisers and also notaries throughout the state that make it convenient to go to wherever the client needs to be.
So to anybody who is outside the Los Angeles area, what would you say to them?
Shane: Definitely call us because we will make your life easier and make this process very simple. You'll think we're right in your own backyard.
California Mortgage Home Loan Brokers,
a Los Angeles mortgage company
Attn: Michael McKown
575 Elm St., Suite #18
Long Beach, CA 90802
818-433-4050 Local
888-632-9939 Toll Free
E-mail to Michael