weather icon Partly Cloudy
RJ App
Vegas News, Alerts, ePaper

There is a difference in mortgage lenders

“When you hear hoofbeats, think of horses, not zebras.” Ever heard that before? Basically, it means that more often than not, the simpler and more common explanation for things is usually going to be the right conclusion.

But sometimes, a fundamental change can take place as to how things are done that can — and should — alter long-held beliefs. That’s precisely what occurred in the mortgage industry following the economic collapse with the creation of the Consumer Financial Protection Bureau (CFPB).

“Most people aren’t aware of the incredible transformation the mortgage industry has undergone as a result of new laws and regulations that went into effect under the Dodd-Frank Act,” said Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “One result was the creation of the CFPB — which was designed to educate today’s consumers about how to shop for the best financial deal, and to provide protections against what, in the past, turned out to be some rather shady financial practices. Say what you will about Dodd-Frank — but there’s no doubt it has been a “win” for consumers when it comes to getting a mortgage loan.”

To be sure, the industry has changed for homebuyers, as lenders are now required to provide more clarity and transparency about the costs involved with obtaining a new mortgage.

But even so — consumers should be aware the rules are not the same for every type of lender.

In particular, mortgage brokers are subject to greater restrictions than banks or mortgage bankers – especially when it comes to how much money they can earn from a borrower on their mortgage loan.

When it became clear the CFPB’s industry changes would be put into effect, many lenders spent their time complaining about the extra work involved and the loss of income they would suffer. But Piette spent his time developing a business model that would give Premier Mortgage borrowers the best possible mortgage loan at the lowest costs.

“I started Premier Mortgage Lending in 2010, right after the passage of the Dodd-Frank Act,” he said. “I had just taken a five-year hiatus from the mortgage industry, and I think that break gave me a unique opportunity to have a fresh perspective when I returned. Remember, the years between 2007-2010 weren’t very pleasant for mortgage lenders. I must have read and studied the Dodd-Frank Act 500 times after it was passed. Not only because it would soon be ‘the law of the land,’ but also because I wanted to dig deeper to discover what this bill was really trying to tell us.

“I listened, I learned, I researched — all with the goal of finding out: ‘What does the consumer want and need today when it comes to their mortgage loan?’ How could my company give customers the best deal on their loans, and still be profitable?”Piette said. “That’s when it struck me — that Premier could gain a huge advantage by becoming a mortgage broker.

“One of the things I’m asked about most often by our clients is: ‘How can your loans cost so much less than other lenders? How do you guys make any money?’” Piette said. “The answer to that is that consumers enjoy a distinct advantage when they use a mortgage broker. With the new federal regulations that went into effect in 2014 came a restriction on mortgage brokers about the amount of money they can make from your loan. The bottom line is this: It can only come from one source, it has a percentage cap; and every dime must be disclosed to the borrower.

“But those same rules don’t apply to banks or mortgage bankers — they’re not subject to any earning limits on a mortgage loan,” Piette said. “Nor do they have to disclose to the borrower all the income they make from that loan.

“As a result, ‘invisible charges’ and ‘undisclosed income’ generate additional income for the lender that buyers may not even be aware of (but they may pay for it in the form of higher interest rates or higher fees),” Piette said.

“As a broker, we’re able to offer our customers a true ‘No Fee’ loan — which means $0 for loan origination, underwriting or document fees. So the only things borrowers have to compare between our loans and another lender is the interest rate and the fees. It doesn’t get any easier than that,” Piette said.

For additional information, call 702-485-6600, or visit www.premiermortgagelending.com. To discover the costs for a mortgage loan, visit www.KnowBeforeYouOweNevada.com. Premier Mortgage Lending, NMLS No. 393282, is at 701 N. Green Valley Parkway, No. 125 in Henderson. The full-service lender is a member of the Las Vegas and Boulder City chambers of commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Don't miss the big stories. Like us on Facebook.
Summerlin supports fitness lifestyle

For Summerlin residents there are many opportunities to stay active, thanks to the community’s abundant recreational amenities.

KB Home showcases Talus at Kyle Canyon

KB Home’s new Talus at Kyle Canyon community is a gated master plan situated in highly desirable northwest Las Vegas.

Three Vegas communities rank in the U.S. top 25

Sales in Las Vegas master-planned communities took a bigger hit than the nation as a whole in 2022 amid rising mortgage rates but the valley managed to have three ranked in the top 25 and five in the top 50.

Summerlin ranks in top 10 U.S. master plans

Summerlin, a development of The Howard Hughes Corp., is Nevada’s highest-ranking master-planned community on the 2022 best-selling list, according to RCLCO, a national real estate consultant that has been ranking master plans since 1994.

Coldwell Banker supports homeless youth

Coldwell Banker Premier Realty hosted a holiday sock drive at all three of its campuses in conjunction with Las Vegas Realtors to benefit the Nevada Partnership of Homeless Youth.

Summerlin celebrates Lunar New Year

Downtown Summerlin, the vibrant urban core of the Summerlin master-planned community, is once again honoring Southern Nevada’s rich Asian heritage with its annual Lunar New Year parade on Jan. 22 along Park Centre Drive.

2022 year in review for Summerlin

Summerlin continued its decadeslong trajectory in 2022, capping off a year of milestone development in Downtown Summerlin, the community’s urban core with annual visitation exceeding 20 million.

U-Haul ranks Henderson No. 17 Growth City

Henderson is the No. 17 growth city in America, according to the U-Haul Growth Index analyzing customer moves during 2022.

SNHBA elects 2023 board, officers

This December, the Southern Nevada Home Builders Association and HomeAid Southern Nevada gathered professionals working in all facets of the homebuilding industry at its yearly luncheon.