Comments on: Subprime Solutions http://raincityguide.com/2007/05/11/subprime-solutions/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Kary L. Krismer http://raincityguide.com/2007/05/11/subprime-solutions/#comment-312401 Kary L. Krismer Mon, 21 Apr 2008 20:10:11 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-312401 I credit crisis is really having wide reaching consequences! :) http://www.dailymail.co.uk/pages/live/articles/news/worldnews.html?in_article_id=561086&in_page_id=1811 (Probably work safe, but does involve the topic of prostitution.) I credit crisis is really having wide reaching consequences! :)

http://www.dailymail.co.uk/pages/live/articles/news/worldnews.html?in_article_id=561086&in_page_id=1811

(Probably work safe, but does involve the topic of prostitution.)

]]> By: Chris Hyde http://raincityguide.com/2007/05/11/subprime-solutions/#comment-308760 Chris Hyde Wed, 16 Apr 2008 23:03:36 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-308760 Great solutions! I especially appreciated the link to the wikipedia definition of a fiduciary relationship. EXCELLENT!!! I also understand the comment you made above stating that you can't have a fiduciary relationship without a set of guidelines outlining what that fiduciary relationship looks like. I am glad that the State of Washington is working on such laws. The combination of such laws as well as self-regulation within the industry would really help to clean up the problem people within the industry. I am planning on reading the code of ethics you have put together for the Ethical Lending Foundation. I stand with you in this fight to bring more ethics into the mortgage industry! Great solutions! I especially appreciated the link to the wikipedia definition of a fiduciary relationship. EXCELLENT!!! I also understand the comment you made above stating that you can’t have a fiduciary relationship without a set of guidelines outlining what that fiduciary relationship looks like. I am glad that the State of Washington is working on such laws. The combination of such laws as well as self-regulation within the industry would really help to clean up the problem people within the industry.

I am planning on reading the code of ethics you have put together for the Ethical Lending Foundation. I stand with you in this fight to bring more ethics into the mortgage industry!

]]> By: Jessica Kristine http://raincityguide.com/2007/05/11/subprime-solutions/#comment-307576 Jessica Kristine Mon, 14 Apr 2008 23:51:16 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-307576 I agree that the subprime crisis is a gift. Most crises are, if viewed in the right way. I like your approach. As a technical editor, I'm all for using the correct names for things, so I agree with that proposal in general. I don't think the average consumer would know the difference between a "mortgage professional" and a "licensed loan orginator," though. I didn't even know there was a difference until reading your articles today, and I've been working at this brokerage for almost a year now (just as an assistant, granted). While it's good for people to use accurate names for things, I'm not sure that works as one of the top three solutions for the problem of deceptive mortgage-lending practices. Further, I could see the argument being made that people are used to businesses using deceptive advertising and that consumers make their decisions based on other things than what businesses call their products, services, or employees. On the other hand, something could be said for outright lying, as well as the subliminal effects of words; maybe there are studies on this. About solution number 2, I say yes! If there's going to be increased governmental legislation (and enforcement), the money should come from the industry, not taxpayers. About solution number 3--a random thought: would a competitor really point out a mistake in a friendly way? That would be great, but I think it's more likely that a competitor would tell a prospective client not to trust anyone who makes mistakes, and that competitor wouldn't communicate with the erring firm at all. I agree that the subprime crisis is a gift. Most crises are, if viewed in the right way. I like your approach.

As a technical editor, I’m all for using the correct names for things, so I agree with that proposal in general. I don’t think the average consumer would know the difference between a “mortgage professional” and a “licensed loan orginator,” though. I didn’t even know there was a difference until reading your articles today, and I’ve been working at this brokerage for almost a year now (just as an assistant, granted). While it’s good for people to use accurate names for things, I’m not sure that works as one of the top three solutions for the problem of deceptive mortgage-lending practices. Further, I could see the argument being made that people are used to businesses using deceptive advertising and that consumers make their decisions based on other things than what businesses call their products, services, or employees. On the other hand, something could be said for outright lying, as well as the subliminal effects of words; maybe there are studies on this.

About solution number 2, I say yes! If there’s going to be increased governmental legislation (and enforcement), the money should come from the industry, not taxpayers.

About solution number 3–a random thought: would a competitor really point out a mistake in a friendly way? That would be great, but I think it’s more likely that a competitor would tell a prospective client not to trust anyone who makes mistakes, and that competitor wouldn’t communicate with the erring firm at all.

]]> By: Jason "Jack" Lowry http://raincityguide.com/2007/05/11/subprime-solutions/#comment-293888 Jason "Jack" Lowry Thu, 27 Mar 2008 20:48:32 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-293888 This is great: 1. Competitive Rate Quote 2. Rate Quote That Won't Change 3. Accurate Explanation of Credit Status 4. Fair Fees 5. Upfront, Full Disclosure of All Lending Fees 6. Accurate Closing Date 7. Immediate Notification of Underwriting Issues 8. Confirmation of a Rate Lock 9. Exceptional Customer Service 10. Advocacy With Lender/Underwriter 11. No Surprises at Closing 12. Help After the Closing As far as I can tell, the Broker I'm going to start working for, follows all of these. I've worked with him as a customer 3 times and as far as memory serves he has followed this code, whether inintentionally or not, all 3 times. This is one of the reasons I look forward to working for him & I will sure follow these. This is great:

1. Competitive Rate Quote
2. Rate Quote That Won’t Change
3. Accurate Explanation of Credit Status
4. Fair Fees
5. Upfront, Full Disclosure of All Lending Fees
6. Accurate Closing Date
7. Immediate Notification of Underwriting Issues
8. Confirmation of a Rate Lock
9. Exceptional Customer Service
10. Advocacy With Lender/Underwriter
11. No Surprises at Closing
12. Help After the Closing

As far as I can tell, the Broker I’m going to start working for, follows all of these. I’ve worked with him as a customer 3 times and as far as memory serves he has followed this code, whether inintentionally or not, all 3 times. This is one of the reasons I look forward to working for him & I will sure follow these.

]]> By: Casey Camby http://raincityguide.com/2007/05/11/subprime-solutions/#comment-291453 Casey Camby Sun, 23 Mar 2008 23:42:54 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-291453 As I stated in my last response it all comes down to the people. There can be many state and federal regulations but in the end these people have to choose their own path. I can't agree more that this is an opportunity acting as a filter for those who want to realize the word profession over the word money. With the way our Business Model is set up, over time the professional and the Greedy are separated. I still believe after time goes by if you don’t decide to be an Ethical Mortgage professional, yet you’ve passed state and federal requirements; word of mouth and reputation will get the worst of you. Fortunately we live in a very tight community. As I stated in my last response it all comes down to the people. There can be many state and federal regulations but in the end these people have to choose their own path. I can’t agree more that this is an opportunity acting as a filter for those who want to realize the word profession over the word money. With the way our Business Model is set up, over time the professional and the Greedy are separated. I still believe after time goes by if you don’t decide to be an Ethical Mortgage professional, yet you’ve passed state and federal requirements; word of mouth and reputation will get the worst of you. Fortunately we live in a very tight community.

]]> By: Dale Uesonoda http://raincityguide.com/2007/05/11/subprime-solutions/#comment-291436 Dale Uesonoda Sun, 23 Mar 2008 23:00:13 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-291436 So many interesting comments here in addition to the article itself. I do agree too that the subprime meltdown was not necessarily a bad thing as it was a reality check for many. The unfortunate affects of the subprime boom will be very, very long lasting however. As many agents, brokers, articles, third parties in this industry, etc, may suggest , govt regulation or self regulation need to be a part of the subprime solution, this however is obviously easier said than done. This industry has so many elements that need to be regulated and has so many elements that affect the market economically, the solution to this or even steps to the solution will be a tough battle. I wholeheartedly agree with all the suggested solutions but considering demographics in this industry, to implement or count on these suggestions effectively will be difficult. Not be a skeptic here but this buisness is sales by nature and the stricter requirements to originate may weed out some but will not elimate many or all of the bad. However, at the same time, licensing requirments I think were a must and a good thing at least from the standpoint of calling this industry a credible profession and not just anyone can do it. In addition, after the fall out of subrime lending, lenders tightening up the guidelines on even the conforming side of things as well, this naturally will rid of many of the lo's out there looking to make the quick buck unethically, its a start at least. Bottom line, I'm all for govt/state regulation implemented as much as it can help and self regulation for as many honest lo's can offer it. Lets keep things positive and keep moving forward. So many interesting comments here in addition to the article itself. I do agree too that the subprime meltdown was not necessarily a bad thing as it was a reality check for many. The unfortunate affects of the subprime boom will be very, very long lasting however. As many agents, brokers, articles, third parties in this industry, etc, may suggest , govt regulation or self regulation need to be a part of the subprime solution, this however is obviously easier said than done. This industry has so many elements that need to be regulated and has so many elements that affect the market economically, the solution to this or even steps to the solution will be a tough battle. I wholeheartedly agree with all the suggested solutions but considering demographics in this industry, to implement or count on these suggestions effectively will be difficult. Not be a skeptic here but this buisness is sales by nature and the stricter requirements to originate may weed out some but will not elimate many or all of the bad. However, at the same time, licensing requirments I think were a must and a good thing at least from the standpoint of calling this industry a credible profession and not just anyone can do it. In addition, after the fall out of subrime lending, lenders tightening up the guidelines on even the conforming side of things as well, this naturally will rid of many of the lo’s out there looking to make the quick buck unethically, its a start at least. Bottom line, I’m all for govt/state regulation implemented as much as it can help and self regulation for as many honest lo’s can offer it. Lets keep things positive and keep moving forward.

]]> By: Gina Kwon http://raincityguide.com/2007/05/11/subprime-solutions/#comment-285191 Gina Kwon Sat, 15 Mar 2008 07:53:17 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-285191 I agree that the best regulation comes from within. Self-regulation is definately the most efficient, cost effective and easiest to implement solution to the ethics problems now quite evident in mortgage lending. As more and more people are driven to find honest LOs that are taking the time to get licensed and have a more solid grasp of the thics behind lending, hopefully the industry will change. Consumers all need to be aware of the dangers inherent in obtaining a mortgage and LOs should do their best to inform them of those dangers of their own accord, not because the government tells them they need to. I agree that the best regulation comes from within. Self-regulation is definately the most efficient, cost effective and easiest to implement solution to the ethics problems now quite evident in mortgage lending. As more and more people are driven to find honest LOs that are taking the time to get licensed and have a more solid grasp of the thics behind lending, hopefully the industry will change. Consumers all need to be aware of the dangers inherent in obtaining a mortgage and LOs should do their best to inform them of those dangers of their own accord, not because the government tells them they need to.

]]> By: Neal S http://raincityguide.com/2007/05/11/subprime-solutions/#comment-284320 Neal S Fri, 14 Mar 2008 06:35:18 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-284320 The young son, he is in his twenties, of dear & close friends went to work a few years ago with a “sweat shop” lending firm, I will not mention the name of the company. He sadly experienced the pressure tactics & promotions of this entity first-hand. Certainly he was making some really ‘good money’ but the compensation was not enough to blind this young man. After a few months, he recognized what was happening and got out. In his youth he could see the unethical measures being used on the public. He left this employer although stayed in lending, now with a bank. His experience gave all of us in the world of mortgage brokerage a bad name & let his parents & friends know how poorly the clients were treated. I adored the three solutions being offered by Jillayne, these are spot-on. Ideally, self-regulation would root out the unprofessional practices; however that day has passed now. Too much money was being made on the way for the lending industry to do much other those passive attempts at regulation. Now, the government has stepped in, for this I am grateful. The break down of the various associations & their intent was quite good; an excellent over view of what is being offered out there. This specific analysis I found to be beneficial. “Members of NAMB must simply look like they are honest”. lol! The other organizations are at the least trying, although might be more lip-service than real substance, in my view. The young son, he is in his twenties, of dear & close friends went to work a few years ago with a “sweat shop” lending firm, I will not mention the name of the company. He sadly experienced the pressure tactics & promotions of this entity first-hand. Certainly he was making some really ‘good money’ but the compensation was not enough to blind this young man. After a few months, he recognized what was happening and got out. In his youth he could see the unethical measures being used on the public. He left this employer although stayed in lending, now with a bank. His experience gave all of us in the world of mortgage brokerage a bad name & let his parents & friends know how poorly the clients were treated. I adored the three solutions being offered by Jillayne, these are spot-on. Ideally, self-regulation would root out the unprofessional practices; however that day has passed now. Too much money was being made on the way for the lending industry to do much other those passive attempts at regulation. Now, the government has stepped in, for this I am grateful. The break down of the various associations & their intent was quite good; an excellent over view of what is being offered out there. This specific analysis I found to be beneficial. “Members of NAMB must simply look like they are honest”. lol! The other organizations are at the least trying, although might be more lip-service than real substance, in my view.

]]> By: Taren Bjorgo http://raincityguide.com/2007/05/11/subprime-solutions/#comment-283503 Taren Bjorgo Wed, 12 Mar 2008 23:45:28 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-283503 I couldnt of said it better myself!!! :The industry has traded consumer respect for massive profits. Mortgage lending can emerge from the subprime mess and transform itself. I see it as an opportunity to put the industry back on track ethically and Self-regulation is a sign that an industry is moving forward and growing up......The subprime crisis is a gift in disguise....(hidden blessings) =) I couldnt of said it better myself!!! :The industry has traded consumer respect for massive profits. Mortgage lending can emerge from the subprime mess and transform itself. I see it as an opportunity to put the industry back on track ethically and Self-regulation is a sign that an industry is moving forward and growing up……The subprime crisis is a gift in disguise….(hidden blessings) =)

]]> By: Thayne Westerman http://raincityguide.com/2007/05/11/subprime-solutions/#comment-282912 Thayne Westerman Wed, 12 Mar 2008 00:55:50 +0000 http://raincityguide.com/2007/05/11/subprime-solutions/#comment-282912 I agree with the flat rate fees. I like your line about the subprime crisis as a gift. Mortgage lending can emerge from the subprime mess and transform itself. It needed to happen and sooner the better! I agree with the flat rate fees. I like your line about the subprime crisis as a gift. Mortgage lending can emerge from the subprime mess and transform itself. It needed to happen and sooner the better!

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