| Broker Indicted After Collecting Advance Fees
OWINGS MILLS, MD - A federal grand jury has indicted Robin Neil Snyder, age 56, of Reisterstown, Maryland, and Mortgage Bankers, Ltd. for wire fraud and money laundering arising from a scheme to defraud loan applicants, prosecutors said. According to the 17-count indictment, Snyder, a licensed mortgage broker, owned and operated Mortgage Bankers, Ltd., originally located in Baltimore and relocated to Owings Mills, Maryland in 2005. From about March 2002 to January 2006, Snyder used an internet website (http://www.refinancecash.com) to advertise and solicit customers for his lending businesses, and promote Mortgage Bankers as a commercial lender capable of providing “difficult" or “impossible" loans anywhere in the United States in amounts up to $300 million. Snyder had prospective commercial borrowers mail and fax to Mortgage Bankers business plans, appraisals, tax returns and insurance information in support of the borrowers' loan applications.
Mortgage application fees have doubled, finds research
Mortgage application fees have nearly doubled in the last three years, says research from consumer finance portal Find.co.uk. An analysis of the mortgage data from financial product research firm Defaqto has revealed that in 2004 fixed mortgage application fees were between £149 and £2,500, giving an average fee of £334. That average has now risen to £611. The range between the top and bottom fees has also widened, from £49 at the bottom end to £2,499 at the top end. Fees that are charged on large loans could be even higher if they work on a percentage basis. One seemingly competitive mortgage deal carries a fee of 3.5 per cent of the loan, so if you borrowed £300,000 you'd be looking at a massive fee of £10,500. And since fees are often added to loans, borrowers pay interest on the fees too.
RATES ON FIXED RATE MORTGAGES FALL BY AS MUCH AS 0.4% AS STABILITY ...
"Following the shock base rate rise in January, fixed rate mortgages flew off the shelves as consumers rushed to get their hands on existing fixed rate deals before they were pulled. But with base rate remaining unchanged now for the last two months, some level of stability has returned. "With swap rates starting to fall back, Moneyfacts.co.uk has seen eight lenders reduce their fixed rate mortgages over the last 10 days, some by as much as 0.40%. "Figures released recently from the Council of Mortgage Lenders showed that 85% of first time buyers and just over 70% of home movers chose a fixed rate mortgage in January, which illustrates the popularity of such deals in the current financial climate. "With many people balancing their finances on a knife edge, the fear of any further increases to their mortgage payments is driving many towards fixed rate mortgage deals.
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