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Sex, soup and the single mortgage

Can you imagine someone saying to you when you go for a mortgage, “Sorry, I have to screw you?” Thanks to the Federal Reserve and their mandate of the “New Porn” has begun. Go into your favorite mortgage broker and ask them to give you a rate with zero points.

They will go to all their lenders and find you say 5% where the lender pays the broker let’s say $2500.00. But, the broker could give you 4.87% where they made $2100, but they are not allowed to do so. The wholesaler is forced to pay the broker the $2500 and make you take the 5.00%.

Fine, then I’ll go to the bank

So, you say to yourself that you will go to the bank. Great idea? Not really, they’ll be charging you 5.25%. Why? Because they can.

So, you will take the 5% and have the broker not be able to give you 4.875% because the Federal Reserve has decided that it is not in the consumer’s interest. That’s right, the Federal Reserve Bank has set the rates you will pay.

No soup for you

So, what’s next? How about prices at a small grocery store compared to a big box supermarket. What if the Fed decided that Campbells Chicken Soup will cost $1.25 at a small store and they can’t charge you a penny less or a penny more.

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You get upset because it used to cost you $1.05. So, you go tot he Big Box and then find it cost $1.77 there. Huh?

This is has to stop, it has to be reversed because once you let the Fed in the door, what’s next? How about real estate commission.

Oh, you say that will never happen? Think again. Mortgage companies are limiting commissions in their loan approvals. Need proof? See it by clicking here.. So, did you ever think that Ben Bernanke would be the porn leader of America? Sexy, huh?

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Written By

Realty Reality! That describes Fred, a sharp witted and outspoken realist for the mortgage and real estate world who has appeared on CNBC and NPR's Marketplace along with being quoted in the New York Times, The Wall Street Journal and other media outlets. Fred is the CEO of U S Spaces, Inc/Arrivva (a real estate brokerage firm in PA, NJ, DE and CA) and U S Loans Mortgage Inc (mortgage brokerage in PA, CA, FL and VA), and serves on the Board of Directors and is the Federal Legislative Director for the UpFront Mortgage Brokers. Fred is also the co-creator of real estate startup, a mathematically driven rental search engine. See everything Fred at



  1. George Duarte

    April 12, 2011 at 11:16 am

    This short article does a great job in translating the arcane Federal Reserve Rule language into a real life scenario showing how the consumer gets screwed. Very well done! Maybe people will wake up and push back.

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