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Stearns partners with homebuilder

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Mortgage Professional America | 16 Jan 2015, 07:47 AM Agree 0
Stearns Lending and a West Coast-based homebuilder have entered into an agreement to form a mortgage company set to be fully deployed by mid-2015.
  • Wm Matz | | 16 Jan 2015, 01:17 PM Agree 0
    Here we go again. This was one of the causes of the mortgage crisis. Builders like KB Homes partnered with lenders like WaMu and Countrywide. When the market got slow, they used inflated appraisals to move inventory. Those abuses led to the HVCC debacle. Builder-affiliated lenders have an inherent conflict of interest and often use deceptive tactics, such as "credits" [only available if using the "preferred lender"] that are paid for by overcharging on the mortgage. Such arrangements may violate anti-trust laws, and -if the affiliate is set up as a broker - would likely breach the broker's fiduciary duty.
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