Do you really trust your banker not to take advantage of you?. Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened. What makes a profitable investment on the secondary mortgage market? The answer: high interest mortgage debt. This is the retail markup of your mortgage interest rate when you borrow from a wholesale lender. The lobby spent millions of dollars romancing Congress to give banks an unfair advantage over their customers. The problem with bank rate sheets is that they already include Service Release Premium and the bank is under no legal obligation to admit it. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. Bank originated mortgage loans have the same markup as retail mortgage loans with one distinction. It will be assigned a value and will be listed in a publicly-available foreclosures list. Millions of dollars changed hands and when RESPA became law, your bank was exempt. If you are in the process of refinancing your home loan with your bank, you will overpay for your new loan no matter where you bank. The only way to spot this markup that your bank includes in their rate sheets is to find out what the going wholesale mortgage rates are. Banks are exempt from RESPA laws due to a loophole created by the banking lobby. They will swear to you that the interest rate is not marked up in any way and even show you the bank’s rate sheets. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. No one but the bank knows how much they are profiting by selling your loan; the more they overcharge you for the loan, the more the bank will profit. Your bank is not legally required to disclose anything beyond the Annual Percentage Rate of your mortgage. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com. When you apply for a loan form the bank, you are required to put up a pledge for security for the loan. The first thing you need to know about banks when considering a bank originated mortgage is that banks are exempt from the Real Estate Settlement Procedures Act (RESPA). Your loan representative will show you the bank’s rate sheets and swear the interest rate isn’t marked up; however, if you check Fannie Mae’s weekly yield you’ll see the bank’s markup clear as day. The property may be appraised at a much lower price than its current market value. Banks are different from traditional mortgage originators because they close on loans in their own name. Thanks to the Banking Lobby this law was changed to exclude banks. If you want to try your hand at this business, visit your local bank and have someone explain to you how buying a foreclosed property works. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders.