Comments on: The mortgage business needs to clean up. http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/ 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: Rhonda Porter http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-195177 Rhonda Porter Wed, 17 Oct 2007 14:14:50 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-195177 Jillayne, the quote you reference, I'm all for. I'm sensitive to when the term "broker" is used when perhaps it should be "originator". "...we need to bring a higher level of integrity to the mortgage origination process. The development of a uniform national licensing, education, and monitoring system for all mortgage brokers is worth considering. Some of the conduct and practices that I have learned about are shameful. It is no secret that, while not the norm, some fraudulent activity on behalf of mortgage brokers occurred." I'm just after equality for all originators. ;) Jillayne, the quote you reference, I’m all for. I’m sensitive to when the term “broker” is used when perhaps it should be “originator”.

“…we need to bring a higher level of integrity to the mortgage origination process. The development of a uniform national licensing, education, and monitoring system for all mortgage brokers is worth considering.

Some of the conduct and practices that I have learned about are shameful. It is no secret that, while not the norm, some fraudulent activity on behalf of mortgage brokers occurred.”

I’m just after equality for all originators. ;)

]]> By: Jillayne Schlicke http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194971 Jillayne Schlicke Wed, 17 Oct 2007 05:50:27 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194971 Rhonda, Interestingly, in the article that Diane referenced, the author does advocate licensing of all originators. "Common sense licensing requirements that are uniformly enforced could greatly help in weeding out the bad actors. A nationwide monitoring system that covers all mortgage originators could help prevent unscrupulous mortgage originators from moving across state lines or switching employers to evade detection." Rhonda,

Interestingly, in the article that Diane referenced, the author does advocate licensing of all originators.

“Common sense licensing requirements that are uniformly enforced could greatly help in weeding out the bad actors. A nationwide monitoring system that covers all mortgage originators could help prevent unscrupulous mortgage originators from moving across state lines or switching employers to evade detection.”

]]> By: Rhonda Porter http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194713 Rhonda Porter Tue, 16 Oct 2007 17:52:17 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194713 national licensing for ALL mortgage originators = a better idea. To single out brokers and not include LOs who work for mortgage banks is wrong. Mortgage brokers are being blamed for "toxic mortgages" which were created by the mortgage banks and pushed by the mortgage bank's wholesale reps and also provided by the mortgage bank at the retail level. Countrywide and WaMu were significant providers of options ARMs both retail and wholesale. Wachovia Bank is still pushing option ARMs on TV as if the making the minimum payment is the answer for when you can't afford your full amortized payment because your dog had puppies. It's totally being marketed to the wrong crowd. Yet it's the mortgage broker who is getting the black eye. national licensing for ALL mortgage originators = a better idea. To single out brokers and not include LOs who work for mortgage banks is wrong.

Mortgage brokers are being blamed for “toxic mortgages” which were created by the mortgage banks and pushed by the mortgage bank’s wholesale reps and also provided by the mortgage bank at the retail level.

Countrywide and WaMu were significant providers of options ARMs both retail and wholesale. Wachovia Bank is still pushing option ARMs on TV as if the making the minimum payment is the answer for when you can’t afford your full amortized payment because your dog had puppies. It’s totally being marketed to the wrong crowd.

Yet it’s the mortgage broker who is getting the black eye.

]]> By: Diane Cipa http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194707 Diane Cipa Tue, 16 Oct 2007 17:03:38 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194707 http://blogs.wsj.com/economics/2007/10/16/text-of-paulsons-remarks-on-housing/ national licensing proposed for mortgage brokers... good idea? http://blogs.wsj.com/economics/2007/10/16/text-of-paulsons-remarks-on-housing/

national licensing proposed for mortgage brokers… good idea?

]]> By: Brian Brady http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194697 Brian Brady Tue, 16 Oct 2007 16:44:50 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194697 The idea is to make us fiduciaries, Ardell. You're point, as usual, is right on target. I'm playing John Lennon here "Imagine..." The idea is to make us fiduciaries, Ardell. You’re point, as usual, is right on target.

I’m playing John Lennon here “Imagine…”

]]> By: ARDELL http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194554 ARDELL Tue, 16 Oct 2007 05:39:25 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194554 Brian, How can a borrower and lender have a "real fiduciary relationship" when lenders aren't fiduciaries? You lost me there. Brian,

How can a borrower and lender have a “real fiduciary relationship” when lenders aren’t fiduciaries? You lost me there.

]]> By: Brian Brady http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194547 Brian Brady Tue, 16 Oct 2007 05:15:04 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-194547 I understand the real estate agents' comments and can respect them. Let me rephrase my question: Wouldn't a financing agreement, akin to the BBA that agents use, with a transparent fee agreement, benefit the borrower, originator, and real estate agents? It allows the originator to negotiate terms for the benefit of the borrower while insuring that his/her work won't be in vain. It allows the borrower the very best chance at a REAL fiduciary relationship; loan recommendations won't be swayed by "hidden compensation". Finally, it provides a sense of stability to the transaction, knowing that no suurprises will materialize. I understand the real estate agents’ comments and can respect them. Let me rephrase my question:

Wouldn’t a financing agreement, akin to the BBA that agents use, with a transparent fee agreement, benefit the borrower, originator, and real estate agents? It allows the originator to negotiate terms for the benefit of the borrower while insuring that his/her work won’t be in vain. It allows the borrower the very best chance at a REAL fiduciary relationship; loan recommendations won’t be swayed by “hidden compensation”.

Finally, it provides a sense of stability to the transaction, knowing that no suurprises will materialize.

]]> By: Seattle Bubble » Blog Archive » A request for clarity. http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-192313 Seattle Bubble » Blog Archive » A request for clarity. Thu, 11 Oct 2007 04:30:23 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-192313 [...] Look, I’m not in favor of the market changing gears as it affects our small business too, but it tires me to no end in hearing and reading local and national professionals in leadership positions (Lawrence Yun among many others) continually spin the “rates are great, economy is doing well and job growth is good.” Tell that to the thousands who will lose their homes across the country, the scores of people who can’t refinance because lenders are gone or standards have tightened enough that refinacing is not an option. Tell that to the thousands of honest, ethical loan officers who have no jobs because of the bull crap lending and behavior that enabled this market frenzy and subsequent and inevitable correction. [...] [...] Look, I’m not in favor of the market changing gears as it affects our small business too, but it tires me to no end in hearing and reading local and national professionals in leadership positions (Lawrence Yun among many others) continually spin the “rates are great, economy is doing well and job growth is good.” Tell that to the thousands who will lose their homes across the country, the scores of people who can’t refinance because lenders are gone or standards have tightened enough that refinacing is not an option. Tell that to the thousands of honest, ethical loan officers who have no jobs because of the bull crap lending and behavior that enabled this market frenzy and subsequent and inevitable correction. [...]

]]> By: David Young #510-LO-34429 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-191857 David Young #510-LO-34429 Wed, 10 Oct 2007 02:28:34 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-191857 Nice post. Thanks! I remember telling 3 people, when I was at Countrywide Full Spectrum Lending, that they didn't want my rates....so C-wide fired me after 2 months. I closed 1 loan I think, a line of credit....and never got paid for it....I think I lost $100.... : ) Nice post. Thanks!

I remember telling 3 people, when I was at Countrywide Full Spectrum Lending, that they didn’t want my rates….so C-wide fired me after 2 months. I closed 1 loan I think, a line of credit….and never got paid for it….I think I lost $100…. : )

]]> By: Diane Cipa http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-191246 Diane Cipa Mon, 08 Oct 2007 23:43:04 +0000 http://raincityguide.com/2007/10/05/the-mortgage-business-needs-to-clean-up/#comment-191246 Tim: Great post. Tim: Great post.

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