@kuku4koco wrote:
Do Loan Officers make more commission on a conventional loan vs. an FHA loan? Why would a bank not recommend an FHA loan if it would benefit the customer?
If they aren't doing FHA loans they won't recommend them. See what is happening below. By the way, this is just a few of the headlines. Which bank did you go to for an FHA loan? I am finding it is best to go to a correspondent lender - they only do mortgages and have a huge variety of loan products. Bank overlays are tighter and the entire loan experience is more stressful (not always as this is loan officer specific).
For example: Chase has largely stopped approving and issuing FHA loans. Here is an article about it: http://www.nationalmortgagenews.com/news/compliance-regulation/jpmorgan-leads-big-banks-out-the-door...
Quicken Loans is being sued by the DOJ for FHA loan violations (fraud) Read this: https://www.justice.gov/opa/pr/united-states-files-lawsuit-alleging-quicken-loans-improperly-origina...
BOA has issues too. They just settled a huge lawsuit by the justice dept against them. Read here: https://www.justice.gov/opa/pr/bank-america-pay-1665-billion-historic-justice-department-settlement-...
Here is an article that is interesting about this fairly recent phenomena http://blogs.wsj.com/developments/2015/04/28/is-the-government-suing-banks-out-of-the-mortgage-marke...
