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(English) Killing An Elephant With A Bazooka

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11 comentarios
  1. Robby Leviton
    Robby Leviton Dice:

    I agree with you. This is another the government is getting involved to “protect” people and they are going to end up going from bad to worse. Good LOs will leave the business, costs overall will go up and people will have to work with the largest institutions which only have their LO’s be desk jockeys and not teach the buyer enough to have them really understand what is going on in the process. Another great way the government is hurting the Real Estate industry

  2. Toby Williams
    Toby Williams Dice:

    I thought loan officers were paid based on the loan value. I guess you are saying they are also paid on all those “extra” fees they produce, like rate locks and points collected. You also discuss how many loan offices are now licensed, but fail to mention all those working for the big banks who somehow escaped having to get licensed, just those working for mortgage brokers. Others, who did not pass the licensing test are writing loan under someone else’s name at their companies. Our government is very good at leaving loopholes and they have done so in the license law for loan officers! Let’s all play by the same rules and license everyone meeting with the public and writing the loan. I think if you see LO getting paid on the value of the loan ONLY, then many fees such as points will be reduced. Only time will tell…

  3. Gloria Jackson
    Gloria Jackson Dice:

    Yes, I agree, and Realtos and their clients will suffer along with them. Less LO’s and less banks mean less options for our clients. It only takes a few “bad apples” borrowing money to taint the whole industry. The bad LO’s were not the only people gaming the system. How about those investors who said they were making $200,000 a year when they applied for their loan? Nobody checked. Nobody was required to check. There are many, many good folks out there now who tried to pay their mortgages, got sick, lost their job, or something, and can’t pay. They also can’t refinance because their house is worth less than their mortgage balance. It’s a big mess started by some greedy people on both sides of the aisle and now we’re all paying for it.

  4. brad veach
    brad veach Dice:

    Dean, you drive home the point wonderfully. As a mortgage banker, I had thought that I may be excluded from some of the “brokers” compensation challenges. Regrettably, that is not true. I take great pride in the profession of mortgage finance. However, with the number of cutbacks in staffing (processors, I have do work harder on a loan today than ever. I don’t mind, because up until now the compensation has been ok. Charge a 1 point origination and share in the YSP for another 1/2 point. Our banks underwriting guidelines have become stricter, thus causing more loans to fall out of the pipeline.
    I interviewed with another bank last week and their idea of a LO was a person that took a zillow lead and then turned the file over to a processor. The LO was reduced down to a phone person and the compensation was $400 per closed file. from that banks point of view, the traditional loan officer is being replaced by the internet where consumers pursue all loans via the least expensive price.
    I have worked hard to craft my profession, I am sad to see the present events taking place.

  5. David Peller
    David Peller Dice:

    I couldn’t agree with you more. I deal with many well qualified borrowers and frequently “go thin” on my pricing to beat my competition. Under FRB’s new rules I can no longer compete for business, I simply have to quote a rate and hope I can sell my services. This country’s economic system was built on competition! This legislation will force more consumer to the major banks and we all know what happens when you eliminate competition. Consumers can expect mediocre service at best and the cost of a mortgage will increase quite a bit.

  6. Max Leaman
    Max Leaman Dice:

    This is the best article I’ve seen on everything happening in the mortgage industry. Over the past few years, I’ve witnessed friends, colleagues, branches, and entire mortgage companies leave the industry for good. In April, we brace ourselves for another big change. I’m optimistic, because my company seems to be handling these changes well, but thus far, I’ve seen the big banks benefit and it seems the consumer is once again caught in the crossfire. I also completely agree with your point: mortgage brokers will no longer exist. So many great points. Anyway, your article is truly appreciated.

  7. Bruce Beddard
    Bruce Beddard Dice:

    As usual, another great article written by Steve. However Steve, I would have loved it if you would have encouraged the professionals realtors in your mix to fight as hard to save the GOOD L/O’s as they fight to save real estate issues that help them. All we need now is to have the 3-4 big banks controlling more of the market. That will not help and will only hurt the industry, thus the real estate professional.
    Realtors should stand up and demand that congress get out of the business of regulation since they have no way of doing it in a way that will help the public.

  8. Steve Harney
    Steve Harney Dice:

    I would suggest that every real estate professional help their mortgage partner as much as they can. That is why this post appears on the blog. As Coach Bill Hart says, we’re “Better Together”. However, as a point of clarification, I didn’t write today’s post. My good friend, Dean Hartman, did. He writes for the blog each Thursday.


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