Forex Digest

I am trying to find out information on how to become an auto loan broker. I would like to find out what are the pro's and con's of the business, and how do you go about getting, licensed or certified in New York. The New York info is not critical but if anyone has any insights that would be great. Any help would be greatly appreciated!!

Start with applying at a few banks or dealerships with financing services.

2006-10-01 10:08:02 by bc

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I checked online that most unsecured loan broker charge between 5%-10%. but I read this quote from state attorney site :

State law limits the total fee a loan broker can assess (after loan approval) to 0.5% of a non-mortgage loan.

does it mean illegal to collect fee more than 0.5% after loan approved ? if so, why som many broker charge much more than that allow to operate in NY ?
thanks in advance and I appreciate the respond :-)

There really isn't one. I know, you may find some information t the contrary, but that only applies to fees that are assessed directly to he borrower and broken out (which vary state by state and not exist at all in some states).

The way around it is for the lender to pay a "finder's fee" and build it into the cost of repaying the loan. The borrower never sees that additional cost over what a direct loan would have been.

Another technique is a simple mark up. This is common with car loans when the dealer act as broker. The interest rate is what the dealer says it is! If the bank's rate is 8% and the dealer thinks you can afford a higher rate and writes it up at 10% then the bank gets 8% and the bank rebates 2% to the dealer. This can work the other way where the dealer writes it up for 5%. Then the bank gets 5% from the borrower and a "buy down" paymet from the dealer. Sometimes the dealer is desperate to sell the car and eats this, but more often, it's built into the price of the car and the borrower is charged a higher price than a cash customer would have paid.

A fee that appears in excess of a legal maximum may be legal if it's called something else and not exactly what the law prohibited. If the fee is illegal and the broker is still operating, it could be that nobody is reporting him because no fee means no loan and the borrowers are willing to pay the fee to get the money.

2008-05-21 06:25:46 by needanswer

Can anyone advise me as to how to become a loan broker and who I need to contact? Thanks in advance.

If you aren't already I believe you should be a lending officer for a broker for awhile first. No need to be licensed for that.

2006-05-11 16:23:17 by reelchick23

I'm already a mortgage and commercial loan broker.
No thanks, I'm already a State Certified teacher, so I'd probably be your worst nightmare !

you can become a life insurance and mutual fund advisor

2008-04-25 21:36:02 by BIGDAWG

She stated it is unheard of a buyer would not buy a point to lower down the interest rate. I have already researched and DO NOT WANT TO BUY any point. Yet, that's what she's saying. I am at the end process of buying a house, so not sure if I should change the loan broker. Please advise. Thank you so much.

Points lower your interest rate and can save you thousands over the term of the loan. This was VERY popular when interest rates were 7-10%. Currently, with interest rates in the 5-6% range, buying down points is less common. One point is usually equal to one percent of the loan amount. Your broker does not benefit if you do or don't buy points, she is just trying to save you money in the long run.

2009-07-21 12:42:58 by Tim