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CFPB not 'one-sided', CFPB claims

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Mortgage Professional America | 03 Apr 2014, 05:38 AM Agree 0
A CFPB official has claimed the regulator is not "one-sided" in its approach to the mortgage industry
  • CmplyGuy | | 03 Apr 2014, 11:44 AM Agree 0
    CFPB is sole duty by law, is consumer protection. There is no definition of "justice" in Steve's comments nor the law mandating the CFPB's existence.

    His own quote from the article supports my statement, "We can and will consider such conduct within our discretion in deciding whether a particular matter justifies a public enforcement action and assessing what level of civil penalties should be levied.

    Simplified, the CFPB is the sole decider of what is "justice".
  • Frank Hudacek | | 03 Apr 2014, 11:57 AM Agree 0
    This statement and stance is a joke.
  • John Deleva | | 03 Apr 2014, 12:08 PM Agree 0
    Justice will be served when the CFPB is reeled in, reformatted and accountable to the legislative process. I am no fan of Congress but at least we can send them home when they fail to serve the best interest of the people.
  • That's what they say... | | 03 Apr 2014, 12:10 PM Agree 0
    Anyone can say whatever they want, but it's what they do.

    Actions speak louder than words.
  • Mark Jagusiak | | 03 Apr 2014, 12:42 PM Agree 0
    BS-they are acting like a Gestapo, full authority with no accountability. Why is it they are mandating underwriting guidelines? (eg QM rules) and why are they still creating a different playing field between banks and brokers? (eg GFE)
  • Anonymous | | 03 Apr 2014, 12:49 PM Agree 0
    @ Mark, that's because Mortgage Banker's Association works on behalf of their peer for the membership fee they are collecting where as Mortgage Broker Association does NOTHING and just keeps sending us email reminders for membership dues!

    Last I checked CFPB was the abbreviation for Consumer Financial Protection Bureau, Perhaps Antonakes doesn't know what CFPB stands for!
  • George | | 03 Apr 2014, 01:06 PM Agree 0
    The CFPB was not created to replace our judicial system as it relates to consumer transactions. Yes they are directed to set standards of compliance, but as far as I know, they were not empowered as a police agency. Let them educate the public, set standards for disclosure, investigate complaints and turn their results over to the courts. Throughout history it has been found that unchecked power corrupts. Our system fails when adequate checks and balances are not in place.
  • Michael | | 03 Apr 2014, 02:17 PM Agree 0
    George you need to read the law and educate yourself. The CFPB is a policing agency.

    Anonymous... you my friend are wrong. The truth is that the money is with the Banks and the Mortgage Bankers. They had the money to lobby Barney Frank & Chris Dodd and the rest of the cronies in Washington D.C. to get the laws passes that would essentially destroy us mortgage brokers. They wanted the business we were taking from them.

    Unfortunately the consumers are paying for this through higher interest rates and costs. Any mortgage broker can still beat the direct lenders rates by 1/2 to 3/4 in rate. The problem we as brokers have is the new laws have made it almost impossible to hire mortgage officers.

    Take away the mortgage officer commission rules, Take away the direct lender non-disclosure rules, Allow mortgage brokers to use YSP as we used to .... and watch us take 60 to 70 percent of the business back.

    Mortgage brokers did the lions share of the business because we gave the borrower a better interest rate at a lower cost.
  • Coal | | 03 Apr 2014, 08:53 PM Agree 0
    You mortgage brokers are a group of complainers. The new regulations are, in part, a direct result of fraudulent transactions from mortgage brokers. Grow up and originate mortgage mortgages like the professionals you claim to be and quit complaining about regulations that prevent you from hiring mortgage officers. If you can't hire mortgage officers, look at yourself first....because you are probably the reason. When is the last time you invested in yourself? What's your attitude today? Are others drawn to you and your mortgage broker company? Probably not. You've been hanging your hat on your ability I offer lower rates than banks for years. Things change. Gt a job at a bank. Some people just aren't cut out to be business owners. In fact, the most successful mortgage broker I ever met owned his company, and hired an assistant and a processor - no mortgage officers. How would you o in that scenario? Is your production good enough to support yourself and two employees with no other mortgage officers. If your personal production will not support you and an assistant....there's a really big clue that you shouldn't be trying to hire mortgage officers. Get to work, lazy mortgage broker.
  • Michael | | 03 Apr 2014, 11:44 PM Agree 0
    Okay Coal...it's time for you to get educated. Pay attention and learn the facts.

    1. The new regulations ARE NOT a result of what mortgage brokers did - PERIOD! Chris Dodd and Barney Frank forced our industry to provide mortgages to those who did not meet the then current qualifying criteria. We had no choice or we would have been guilty of violating federal law. This has been verified and published. You need to read and learn my friend.

    Also the BANKS that you so love developed these mortgage programs, they underwrote the mortgage files and approved the borrowers. They sold mortgages that they knew were toxic to unsuspecting investors and private individuals who purchase their mortgage backed securities.

    Isn't it interesting that those same banks are still be prosecuted for mortgage fraud.

    2. We mortgage brokers originated over 65% of all mortgages for decades before this government caused melt-down. The banks have always tried to get laws passed to take that business away from us.

    If the laws were fair and placed the Banks, Mortgage Banks, and Mortgage Brokers all on the same level playing field. We mortgage brokers would again dominate the industry because we do a better job, more efficiently, and at a lower cost to the consumer.

    3. We mortgage brokers were the only originators who were required to be licensed and meet education requirements - PERIOD. Those bank mortgage officers you so love are not and do not. And that my friend is still true today. Those who could not meet the education requirements and pass the federal and state exams went to work for the BANKS.

    4. As far as investing in ourselves - again I repeat. We are the ONLY ones who have to meet stringent education and licensing requirements. Along with annual continuing education requirements.

    5. We mortgage brokers are able to offer lower interest rates and a lower cost to the public because we are better at what we do and more efficient at what we do than the banks you so love. The new regulations that you seem to be so proud of are a direct cause of higher interest rates and costs to the public.

    6. Now let's talk about business owners. Do you own the business you work for? Have you put your capital at risk of success or failure?

    I have owned my company for 25 years. I started as one mortgage officer (me) with one mortgage processor. I built a successful mortgage business that hired and employed over 200 mortgage officers and mortgage processors all over California.

    As far as mortgage production you arrogant person (please notice that I didn't use the language you deserve) I PERSONALLY funded 20 to 30 mortgages every month within 6 months of starting in this business until I stopped originating because those who were employed by my company needed me to apply 100% of my efforts to assure that my company was there for them and their families.

    7. Now one other piece of information for you... as a business owner I paid my mortgage officers 100% commissions and kept only $500 dollars for my company. And these were true commissions. We didn't pad our interest rates or our fees. By law we disclosed every penny our company earned. The banks that you so love don't do that. And they make more than 5 times the money we mortgage brokers do just on the YSP they earn because of the interest rate.

    I could go on and give you more FACTS and attempt to educate you...but I am sure it would all be in vain. Some people just are intelligent enough to see the truth when it is staring them in the face.

    Oh, by the way Coal... now that you have eaten CROW.... your apology will be accepted. Although I doubt if you are man enough to give it.
  • George | | 04 Apr 2014, 12:11 AM Agree 0
    Hey Coal, why are you so concerned about such an unprofessional unqualified lot as the mortgage bankers. You most likely work for a bank. Some bankers look down their noses at many consumers and most of their competition. If you study the history of banking in the USA, you would learn that early bankers were a very unscrupulous lot of thugs and robber barrons. They schemed, mortgage sharked, owned the saloons and controlled most local businesses via credit. It is like my grandfather said, you can get the dogs to play with mean kids by hanging a pork chop around the kids' necks. In early bankers' cases, the attraction or "pork chop" was money. In case you are wondering, I spent 27 years in banking, including stints as CEO with 2 different companies. I am very familiar with bank and broker sides of this issue. Your assumptions are preposterous. You are so poorly informed that I should take my grandfather's other advice and not get into a battle of wits with an unarmed person like you. Your comments reveal a shallow perception of how the mortgage industry and banking lobbies really works. First, new regulations you refer to are an attempt to catch the horse that got out of the barn in 2006 and 2007. More importantly, they are thinly veiled opportunity to eliminate competition, reduce costs and increase profits. For your information, unscrupulous brokers amounted to a very small percentage of the mortgage problems and losses. Your unsophisticated opinions, if broadly held, will result in under served segments of the market and more limited choice, if any choice, for many borrowers. If you could possibly, please just concentrate on doing an excellent job personally rather than judging others with whom you are unfamiliar and for which you have inadequate information. Good luck to you, you will need it.
  • CmplyGuy | | 11 Apr 2014, 02:04 AM Agree 0
    Coal. Would you name all the mortgage programs created by mortgage brokers?

    . . . . Waiting . . . . waiting . . . . that's right. Not one!

    Loan programs were designed typically by Wallstreet or conduits they defacto controlled, then offered for sale through direct lending and wholesale channels.

    The so called liar mortgages were designed that way. Designed by Wallstreet to cheat. It was not an accident. APR, a regulatory formula, could not accurately deal with the negative amortization and other hybrid methods.

    You may want to review the 600+ page government report: "WALL STREET AND THE FINANCIAL CRISIS: Anatomy of a Financial Collapse". Some truth did get documented, but the same thugs that designed those liar mortgages, sold them as AAA rated securities . . . how many went to jail? I do not know of any.

    Brokers, small business, as Michael mentioned, not only were originating 65-80% of the business, but I watched as they brought the END to redlining.

    I watched as they brought the END to social and economic disenfranchised groups in home lending.

    Brokers reflected our country in racial makeup, in social and economic background. They brought home mortgage access to every street and every neighborhood.

    No is wasn't altruistic. It was because they could make a good living.

    Over 30,000 small companies similar to Michael's failed to survive. 800,000 originators displaced, 75% leaving the industry.

    Yes, the collapse was an orchestrated criminal event, but not by brokers. They were neither organized or sophisticated enough to be the culprits.

    The opportunity was seized and as George stated correctly, presto! Dodd-Frank . . . instant market ownership for those too big to fail.

    Follow the money, not the fairy tales.
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