As of April 1st a new set of laws from the Dodd Frank Law that was constructed to protect consumers from unknowingly paying a higher rate. It was also designed to regulate mortgage brokers and mortgage bankers to keep the shopping by the consumer for a rate a level playing field for the consumer.

The issue? It did not regulate brokers and bankers at all. It changed the compensation for individuals in the mortgage industry but did not even come close to helping consumers when it comes to shopping for rates. Now, not only will consumers still have to go through each offer with a fine tooth comb but in order for them really understand what the cost of the offers given from different companies they will also need to know how their mortgage consultant is compensated.

Once Dodd Frank went into effect its main goal is to make sure that a loan rate is not connected to the compensation of a mortgage consultant. This sounds really great for a consumer. It gives the impression that when a home owner or buyer is shopping rates now there is no way they are getting anything better than the best rate out that day. Well, not so much. Since the law does not regulate specifically how the mortgage industry was to compensate individuals it created a market where each company is now compensating it's consultants so they are following the rules of the law but depending on the way a company reads this law varies greatly and thus the compensation. There is still no "apples to apples" comparison for the consumer.

As a consumer you will still need to go through any offer with a fine tooth comb. There will be more in discount points to pay but you may be receiving a "lender credit". This will balance some or all of the cost of a discount point. There will be more to looking at an offer now then there ever has been. Be prepared to ask questions and know that an honest mortgage consultant will take the time to answer each question you have with patience and clarity.