For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Banks are exempt from the disclosure rules required of other mortgage lenders. What is SRP and why should you avoid banks altogether for your next mortgage loan? The answer will surprise you. The problem with taking out a mortgage from your Bank is that they are not required to disclose any of this markup due to loopholes in the Real Estate Settlement Procedures Act. It will be assigned a value and will be listed in a publicly-available foreclosures list. Banks mark up wholesale interest rates to boost their profits when selling your loan. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. Your banker wants you to pay the highest mortgage rate possible so the bank makes the most money selling your loan on the secondary market. Fortunately for you, there is a way to spot it. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook. Banks routinely overcharge their customers by marking up mortgage interest rates. This notice of foreclosure warns or informs the owner that his house or business property will be put up for a public auction at the end of ninety days, after which, the property will become real-estate owned. Banks and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. Banks do the same thing to make money selling the loans on the secondary market. The ugly truth about banks comes from the fact that they are exempt from the Real Estate Settlement Procedures Act (RESPA); legislation that protects homeowners from abusive lending practices by requiring mortgage lenders to disclose all fees and markup associated with their loans. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. Thanks to the Banking Lobby the law was changed to exclude banks from this requirement. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. Banks fund their loans with their own money before selling the mortgage on the secondary market. The markup of your mortgage rate for this reason is called Service Release Premium. A little known loophole in the Real Estate Settlement Procedures Act could cost you thousands of dollars in unnecessary mortgage interest. This is the retail markup of your mortgage interest rate when you borrow from a wholesale lender. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. Now you might be asking yourself how RESPA factors into this. Because your bank is exempt from the Real Estate Settlement Procedures Act they will never disclose or admit to this markup. Banks and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. You can compare your bank’s inflated mortgage interest to the weekly yield on Fannie Mae’s website to get an idea of the markup. If you are considering mortgage refinancing with your bank, you should read the following discussion first. To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. This means the bank can literally charge you whatever they like and no one is the wiser. The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans.