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Death by regulation: One picture equals 1,000 mortgage rules

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Mortgage Professional America | 05 Mar 2015, 08:28 AM Agree 0
Have your magnifying glass ready. A SEC commissioner has created an overwhelming diagram that shows all the new regulations that have been imposed on U.S. financial services firms since Dodd-Frank.
  • RobinHoodMortgages | | 05 Mar 2015, 11:15 AM Agree 0
    Are the poor banks too heavily regulated? This guy has the gall to complain about regulations.....after these same banks were allowed to run wild and caused the global meltdown, left millions of Americans homeless, and lost trillions of dollars for investors and American taxpayers???

    What are the odds that SEC Commissioner Daniel Gallagher will soon be working for one of the 2 Big to Fail Banks that caused this whole mess in the first place? I for one, wouldn't be surprised!
  • mortgageman | | 05 Mar 2015, 11:33 AM Agree 0
    Hey robinhoodmortgages the banks gave the mortgages but do some research on who made them do it. Congress insisted that homeownership was a right and demanded that everyone should get a home. They used the community reinvestment act to slap lenders into providing crazy mortgages that anyone qualified for and look what we got. Thanks Chris Dodd and Barney Frank!
  • mtmortgage | | 05 Mar 2015, 12:02 PM Agree 0
    CRA slapped no income no job no asset mortgage products??? How about collateralized debt obligations on the banks, I suppose you think congress and their "crazy mortgages" for "anyone" (code for low-income) are responsible for those too.

    Maybe you should do some research
  • Cheryl M | | 05 Mar 2015, 12:09 PM Agree 0
    Mortgageman, do your research, those in the area of wall street gave the go ahead for those banks to provide/sell their mortgage product to "anyone" This has already been heavily proven, yes those banks had the moral authority to realize "anyone" could have been bought under control. There has been enough blame going around for almost a decade, it's time to get over it and realize this "over regulation" is going to be here for a while and we all just learn to go with the flow. The mortgage industry is the smallest group to not show up on the steps of Congress to do "nothing about it." So as much as we participate in these blogs the bigger issue is we aren't heard at all. Start actually writing letter to those Congress men and women who participate like you and talk about something they don't research.
  • Maureen | | 05 Mar 2015, 12:40 PM Agree 0
    Part of the point I see in the graphic is this...the size and scope of all the regulations is crushing the brokers who provide invaluable products and services to the consumer...our actual function - originate mortgage mortgages - has become so burdensome because we are buried in regualtions and fear compliance with every little nuisance of the non-regulated CFPB. When more documents and disclosures continue to be added to an already overloaded borrower package borrowers become more confused and frustrated in the process, not less. Further, the consumer suffers financially due to the added compliance and expenses as a result of increased regulations. The compounding effects make doing business so costly and time consuming that it is impossible to see how this is a benefit to the borrower.
  • MtgGeek | | 06 Mar 2015, 09:50 PM Agree 0
    Mortgageman's got it right.
    Robinhoodmortgage has insufficient information.
    Do yer' homework guys and gals. The industry was sold a lemon with AAA ratings stamped on the label. We were conned by Wall Street and misled by the ratings agencies and now we are paying for it BIG TIME by way of CFPB overreach. In the end, costs have gone up for mortgage originators and for consumers, compensation has gone down for MLOs, and some applicants are unable to obtain a new mortgage thanks to silly ATR/QM requirements. Right, Ben Bernacke? And the guys at the CFPB will never get it because those guys don't take mortgage apps or have to deal with real people who have their houses packed into a moving van just waiting for some new reg to clear so they can unpack, or not.
  • MtgGeek | | 06 Mar 2015, 09:55 PM Agree 0
    Maureen, you nailed it!
  • griff | | 10 Mar 2015, 08:05 AM Agree 0
    Mtg Geek and Maureen have it right. The bottom line that the SEC commissioner has overlooked is that all the regulations have hurt the small brokers and lenders while Wall Street and the big banks still get a pass. Wall Street regulations were already rolled back as the first thing Repubs did when they got the senate. They started on the wrong end of the spectrum. The rating agencies encouraged by Wall Street and the big banks caused the problem.

    And, guess what! Guess who was not doing their job.... the SEC. This dude really does have some cajones to even go here.
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