As a general manager at Apex, I can assure you there are no cash flow problems whatsoever with this company. What HAS been happening is an issue in many states regarding borrower complaints to various state agencies and the BBB regarding initial disclosures not matching the actual closing numbers. What some brokers fail to comprehend is that a borrower can legally demand a refund for any lender associated fees that were not correctly disclosed in the initial GFE. This includes YSP as well. The arguement that you don’t know the correct YSP if the loan is still floating is correct, but upon locking it then an updated GFE needs to be signed. Nobody seems to want to do this. I see hundreds of HUD’s where the initial disclosure was for say 2 points and $700 or so in fees, and the final HUD shows 2.75 pts and $1150 in fees, with no updated GFE anywhere to be found. This also holds true for rate / term / or program changes. And then WE are liable for the difference. And it doesn’t even require a customer complaint. When we are audited by various states, they come back to us with a report showing the total number of “GFE disclosure discrepancies” that need to be refunded to the borrower. We have paid out over $178,000 in refunds since Jan 1 of this year. We are being sued right now by a borrower who changed his loan terms from a 30 fixed to a 30 yr / 10 yr interest only. His GFE though still shows 30 yr fixed with a monthly payment based on the interest only, and is suing to make us eat the adjustment he will get in 10 yrs. You think the branch manager is going to pay for that?? All each broker needs to do is to make sure that all rates, terms, and lender associated fees are correctly disclosed, and have a signed GFE matching the HUD in the file. No more adding $500 or so when you order the closing docs, and other nonsense. What we may do, and we’ll see how much abuse it gets, is to ease up on the final GFE requirement, and simply hold the branch responsible for any state ordered refunds for disclosure violations. I’m open to any other suggestions, because if we are going to be eating $1,000,000 per year in various state refunds, then we very well may wind up having “cash-flow” problems some time in the future.