Comments on: What if Non-Profit Housing Associations Were Able to Originate Mortgage Loans?

By: Jillayne Schlicke

Jillayne Schlicke — Mon, 29 Dec 2008 19:17:21 +0000

Hi shelly,

Thanks for stopping by RCG. Many philosophical, moral, and business ethics theorists that have studied motivation in many settings have come to the same conclusion as you; that is, environment plays a critical role in human behavior.

By: shelley safronek

shelley safronek — Mon, 29 Dec 2008 18:59:05 +0000

I am in total agreement that the mortgage professionals should be better trained and have greater requirements for entry as we are paid very well in this industry and it’s no wonder our reputation is equivalent to a used car salesman. However, integrity is not something that is learned in a book or in classroom settings, it is hopefully taught in the home by example. As we all know in every industry there are the bad seeds. Purchasing a car, auto/home/life insurance…don’t get me started as there are so many opportunities to be taken advantage of. The disclosure requirements have become so overwhelming, there is far too much for a homebuyer to read and try to understand when all they want is to purchase a home!

Back to the question of Non Profits originating loans? I suppose the NPO will come in and rescue the day but I do not believe if the NPO’s would have been the sole originators in this current economic environment that it would have saved the market from this global mess. I do not see the Better Business Bureau saving consumers from poor business tactics. This economic downturn has been the result of much more than the subprime loans. Let’s start with corporate greed! Turn on the television and listen to how the media influences, twists and turns events. Has anyone read the article in the NY Times dated September 30, 1999 that illustrates the beginning of the pressure from the Clinton Administration and Fannie Mae to expand homeownership. Google this article and it clearly starts from the top. I don’t think even the NPO’s originating loans could have prevented the collapse of the US Housing Market.

By: Randall C Frost

Randall C Frost — Mon, 21 Apr 2008 18:43:32 +0000

I agree with you. The mortgage professionals should be qualified. That means passing the State Exam is not enough. I have spent 10 years working with the consumers to get them into their own homes and I take pride in explaining all aspects of the loan to them. I do believe it is the responsibility of the Broker/LO to treat their customers fairly and uphold the integrity of their position.

By: Dale Uesonoda

Dale Uesonoda — Tue, 15 Apr 2008 01:04:11 +0000

I know its been said before over and over again but education is so important and applies daily to everything but especially when deciding on a home loan. We have a duty to educate and inform our clients of their options, the service should sell it self. We truly are trusted advisors and as you mentioned:

The LOs that are left when the entire meltdown is finished should consider setting the bar higher because for them it will be no big deal; they’re already acting as if they had fiduciary duties.

I could not agree more. This crisis we are dealing will result in a better market and more realistic expectations I feel, time will tell. as far as non-profit originating loans, again, it comes down to knowledge and credentials to educate consumers shopping for a loan. I’m all for the purpose of non-profit either way, more affordable options the better as long as it is presented accurately.

By: Casey Camby

Casey Camby — Mon, 24 Mar 2008 01:05:21 +0000

Both Broker and Non Profit have its benefits. I would love to take part in a non profit giving homebuyer seminars. I would get great leads that way, and as a broker I love teaching my clients how the Home Buying process works. If a client wanted a GFE from a Non Profit and me I could come in lower on rate or origination fee. I actually know many non profits that sponsor things such as Dare that give as little as 5% to the actual program. They need to be ran properly and it seems that the people and government still differ on what is appropriate.

By: Gina Kwon

Gina Kwon — Sat, 15 Mar 2008 08:18:19 +0000

I believe if non-profits were to start originating home loans for first time buyers with less than stellar credit, it would be terrific for those people first of all. Helping good people obtain loans that they otherwise aren’t able to receive is a large part of what I do on a daily basis and what I find to be most rewarding. The task force is a good step in the right direction I think, but they do seem to be reaching a bit far afield in trying to forcefully educate teens on financial responsibility when they are thinking of homecoming. I like what they are trying to do however.

By: C Seal

C Seal — Sun, 02 Mar 2008 06:18:46 +0000

I don’t see where having non-profit agencies originating loans would be a problem. There is always room for more competition. Unfortunately, there might be a steep learning curve in the office. The LO working for a non-profit company would more than likely be new to the industry. It seems to me that the person new to the business would benefit from others in the office with a higher level of experience to ask questions of.

Also, every profession benefits from continuing education. Some other professions pick a certain topic for the year so everyone is on the same page. Maybe filling out federally required forms should be our next yearly topic.

By: Brady Fisher

Brady Fisher — Tue, 26 Feb 2008 22:38:55 +0000

I think that Non-profit housing associations working as LOs is a great idea. I grew up in Renton, WA, which is an area that could definitely use some help obtaining loans for low to moderate income borrowers. Also, an area such as this would be a prime target for teaching the ins and outs of financial responsibility regarding homeowners. I don’t know if making it part of the WASL is the best route. I, for one, did not take this test seriously. Maybe if it were included as a class necessary to graduate.

By: Dave Harmon

Dave Harmon — Tue, 26 Feb 2008 00:43:25 +0000

Non profits doing mortgages.

There arent to many non profits going to pay six figures. I would imagine the LO’s working for the non profit will have little to no experience. These are exactly the possitions where experienced LO’s should be but wont. It sure seems like a good idea. Ive read several times in these blogs people saying if its to good to be true……

By: rebecca

rebecca — Wed, 20 Feb 2008 03:58:33 +0000

I’m not sure why I haven’t heard of NPO’s before but I think its a fantastic idea. Of course LO’s have a fiduciary responsibility to our clients-placing them in good loans and making sure they fully understand the terms is what we’re supposed to be doing already! Furthering the LO’s education will ensure it. Great idea.