Bank of America eliminates closing costs

NEW -> Contingent Buyer Assistance Program
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waitingtill08_IHB

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http://hosted.ap.org/dynamic/stories/B/BANK_OF_AMERICA_MORTGAGE?SITE=CAANR&SECTION=BUSINESS&TEMPLATE=DEFAULT








I just saw this on the OC Register. Is it too good to be true? Will the fees be made up somewhere else? Do you think that banks will start competing for what few potential prime buyers are out there by eliminating fees?
 
Since it is a direct lender they do not have to disclose their servicing fees so they will be built in there and the rate will be higher. No fees do not always equal the best deal. If you are really curious, because it could be a better deal than most, then walk into B of A and get a quote on a thirty year fixed loan. Then after they give you the quote say that is the no fee mortgage plus rate right? If you do this please let us know how they react.
 
Does anyone feel that this is a way that major banks are going to try and start sifting out all the bad brokerage firms so they are not left holding a sack of terds again?
 
<p>Another vote here for padding the rate:</p>

<p>I just recieved a pre-approval from them for a 30-year-fixed, 80%LTV for 1,000,000 with a 780 FICO.</p>

<p>The rate? 7%</p>

<p>Not that it matters, anyways. I've decided to become a bitter renter :) YAY!</p>
 
<p>The Register had this Reuters <a href="http://www.reuters.com/article/bankingfinancial-SP/idUSN0737732420070508">article</a> in the Marketplace section and here is the key quote from the article:</p>

<p>Robinson said rates will be "competitive," though not necessarily the lowest. "We certainly think they'll be in the top half of competitiveness in every market we're in," he said. </p>

<p>mino2126 - The banks like B of A or others like Countrywide will quickly find out which mortgage brokers are sending them crap loans. Not only will they cut them off but if there was a yield spread premium paid to the broker they will come after them for it. I doubt they would ever be able to collect but they will try. If the broker burns too many bridges eventually they will no longer have any lenders to work with. Check out how Dana Capital shut down <a href="http://blogs.ocregister.com/mortgage/archives/2007/05/dana_capital_closes_branch_man_1.html">here</a> . There is more to this story than Matthew knows and they are the poster child of how the business needs to have better regulation.</p>
 
Thanks for the feedback Graphix. Just seems to me that I am seeing alot more advertising from bigger banks now wanting to process the loan themselves vs going through independent brokers. Makes sense as I would assume their due diligence is going to much more stringent and through than "New Century's" ever was.
 
<p>the BofA no fees loan was actually the one that we were going to go with (before we decided to wait it out). the orig rate they gave us was a little over 6%. i told them that wells fargo was offering high 5's (with fees) and BofA countered with a flat rate of 6% and no fees. so even tho the rate is padded...it is still negotiable.</p>
 
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