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Industry group to defend brokers at CFPB meeting

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Mortgage Professional America | 05 Nov 2013, 07:23 AM Agree 0
A leading mortgage industry group will meet with the Consumer Financial Protection Bureau today to spell out industry concerns about new regulations set to take effect in January
  • John O | | 05 Nov 2013, 08:14 AM Agree 0
    My hat is off to Don Frommeyer. He appears to be a cool, level headed leader. If change can be made I think he "and his team" can do it...
  • Megan Ennis | | 05 Nov 2013, 09:30 AM Agree 0
    I am sad over the CFPB's rules. I am a broker that works in a rural county of Florida. A large poriton of my borrowers are going to suffer. The average mortgage amounts are 50K - 60K - due to these new rules on the 3% cap - I will no longer be able to assist them. Most of the BIG banks in the area don't want them.....this is where a mortgage broker is an asset in the community!!! Not to mention the millions of americans that don't have "PERFECT" credit. The BIG BANKS don't want them either......AGAIN - this is where the "Mortgage Brokers" of America benifit the lending arena......WE (Brokers) have the avenues to ASSIST the lower mortgage amounts and the lower scored borrowers..........NOW with all the changes in lending through the CFPB - we (brokers) are going to be very limited on who we can assist. America needs to speek up!!!! Not just us in the industry!!!
  • Brad Schauer | | 05 Nov 2013, 09:41 AM Agree 0
    Now they want to figure out how the mortgage process works after instituting the regulations.
  • Megan Ennis | | 05 Nov 2013, 09:44 AM Agree 0
    I am a "mortgage broker" in a rurual area of Florida - I assist first time home buyers in lower income brackets and also assist borrowers in lower credit score brackets. Most of the larger banks in the area do not want the lower mortgage amounts OR the lower credit score borrowers. With the new CFPB's rules - I will be limited with who I can help.....which puts the consumer at the disadvantage. IF I the "broker" can't help - and the larger banks won't help - the consumer loses!! The 3% cap is going to force us out of the lower mortgage amounts for sure. It is very sad to me. I work with the "low income housing" in my county and I enjoy working with the first time homebuyers in my community - now I am being forced out.
  • Paul J Deschaine | | 05 Nov 2013, 09:58 AM Agree 0
    The CFBP's qualifications to regulate the broker's industry is right in line with the husband telling his pregnant wife he knows exactly how she feels.
  • George McGuire | | 05 Nov 2013, 11:31 AM Agree 0
    Brad that is a piercingly perceptive observation. Megan, I am a small broker in a depressed town in the rust belt. The regulations as now proposed would force the majority of buyers in our market to pursue private lending or "non conforming" lending at higher costs than standard mortgage lending. Non standard mortgages also have balloons, variable rates, stringent default provisions. IN short and unintended consequence of the QM and QRM will be forcing lower income borrowers into the kind of borrowing they are trying to eliminate. Nice work CFPB!
  • Ralph | | 05 Nov 2013, 11:39 AM Agree 0
    The 3% cap rule wil also further limit borrowers from buying down their rates to qualify from the already too low 43% ratio. This rule was not well thought out
  • NoSpinJustTheFacts | | 05 Nov 2013, 03:19 PM Agree 0
    Odd how CFPB is claiming they are attempting to protect consumers. Yet, the exact same borrower with the exact same mortgage will be classified as non QM/ATR if working Broker but QM/ATR if with a Banker. Simply due the perverse use of Origination Charge versus Adjusted Origination Charge in calculating 3%.

    Either CFPB staff are GFE ignorant or targeting the elimination of Brokers.

    Additionally, the CFPB has no empirical data to show a 3% fee has any impact on ability to repay. Shame on lack of integrity.
  • Rick from No. CA | | 06 Nov 2013, 12:49 PM Agree 0
    We don't need more regulation. We need more business. The lending landscape has plenty of competition to control the broker's fees. Without us, the Federal government is being robbed of its tax base.
  • Tim from Michigan | | 07 Nov 2013, 11:52 AM Agree 0
    I disagree, It is about time that someone is stopping Lenders and Mortgage broker's from hiding fees (yield spread, service release premiums, etc). The 3% cap is a good thing. Under the current rules the broker can get paid and the borrower has no idea that he, she or they is even paying them.
    Dear Mr Broker and Mr Lender. I am so sorry that you created this mess, You should have not been putting through so many bad mortgages. That is what created this huge mess. If you did not caused this issue in the first place and we would not be here.
    Mr Broker you used to get, what up to 8%. Damn, I wish I could make that. Lenders taught you how to commit the fraud, you were doing it. You killed this economy and now you complain like children. The government has to step back in and slap you one the wrist. So sorry
  • John O | | 07 Nov 2013, 12:08 PM Agree 0
    Tim - you sound like sombody that was ban from the business or could not get a license - sounds like sour grapes......
  • Paul J Deschaine | | 07 Nov 2013, 12:32 PM Agree 0
    Dear Tim from Michigan, you got me. Please don't blame all brokers for this, it was me and me alone that killed the economy. I had it planned for years. I alone. If you would like to take time away from all the hard work you've put into your research on this subject I will gladly show you how to topple entire governments and banking systems. If you're concerned about maybe missing those important TV shows I may even be talked into recording these just for you. But Tim from Michigan, I will not wash that mostly white wife beating T-short of yours and my dog is not allowed to lick your feet.

    Paul J Deschaine
  • Tim from Michigan | | 08 Nov 2013, 07:30 AM Agree 0
    Dear all, I it nice to know that you all can have your opinions but I am not entitled to mine. Thanks.
  • Paul Deschaine | | 08 Nov 2013, 08:23 AM Agree 0
    Well Tim from Michigan, you're entitled to your opinion, I would suggest you get your facts straight before you share them with the world.
  • George McGuire | | 08 Nov 2013, 08:28 AM Agree 0
    Tim from Michigan. Certainly you are entitled to your opinions. I for one am glad to hear them. They reveal misinformation is currently in circulation. The mortgage business is complicated, figures can be misleading and disclosures do not create a level playing field. For another applicable cliche, one size does not fit all. Historically when the government tries to control pricing to protect consumers the ultimate result has been higher consumer pricing. I have no confidence that the current regulatory actions will have different results.
    Thanks for for being brave enough to share your contrary opinions. Enjoy your weekend.
  • Megan Ennis | | 08 Nov 2013, 08:36 AM Agree 0
    Tim from Michigan........you are correct 3% is MORE THAN enough and fair - that is not the issue.......What you aren't aware of is the 3% rule is going to include OTHER fees paid to OHTERS not the lender or broker!!! SO in reality we are NOT making 3% - which will hurt the smaller mortgages. If you a broker/lender is only yielding .5% on a 50K mortgage = $250.00 on a mortgage that they spend as much time on as a larger mortgage amount........they aren't going to do those smaller mortgages........and this is going to limit the consumer's choices on who they can use......because most lenders and brokers are not going to work for free. The Governement is trying to give the consumer less options......which will ultimatley result in higher interest rates......you really need to look into this new rule to understand the whole effect it is going to make in the industry and the consumers loose!!! Thank you for your input!
  • Megan Ennis | | 08 Nov 2013, 08:46 AM Agree 0
    And Tim you are entitled to an opinion.......but please make sure you have all the facts before you bash our industry.....I have helped so many first time homebuyers and single mom's and dad's that A) do not have a lot of money B) do not have the greatest of credit C) need assistance with down payment and LOW fees......and YES I have helped these people - not getting rich - but doing a great job helping out my community.......and trust me more than one of these borrowers started out by saying " they need help " "no one will call me back" - (who ever that no one is - is up for interpretation) I the little broker will call the little mortgage amounts back.......the low scored borrowers back..........I am a very important channel for those types of borrowers.........if you remove me and many others like me - the consumer will suffer.......I can continue in business - I will just have to focus on the larger mortgage amounts. Not by choice......I love working with the lower income community....I am a mom at heart and they need some guidance!! I hold their hand!! I am sad not at the loss of revenue.......it is at the loss of the consumer that needs me!! Thank you.
  • Tim from Michigan | | 08 Nov 2013, 10:06 AM Agree 0
    I can see from all the comments that it appears that I am still not allowed to have an opinion. I am being told I don't know what I am talking about. I have working in this industry for 20 years. I have and still own several two companies. I understand the problems.
    I just don't think it is right to hide fees. I also don't think it is right for lenders to own mortgage companies and for mortgage companies to own title companies.
    They say they are competitive when in fact they are not. If you want this industry to survive, we need to put fair competition back into this industry. Stop the one stop shops and you will see how much money the borrower will save. Stop the mortgage brokers and real estate agents from wanting the illegal kick backs.
  • PacFore | | 17 Nov 2013, 10:59 PM Agree 0
    so in that case Tim why are you not barking at the bankers that have no cap on the money they can earn in their ysp and not disclose that? The 3% covers the lenders fees which the broker doesn't earn. For poor Megan, that amounts to nearly 2% of her 3% income ie she works for $250/mortgage which means she will writing a check not earning one for every deal she closes. That's my opinion
  • Down in LA (lower Alabama) | | 18 Nov 2013, 12:31 PM Agree 0
    Another example of "class punishment'...the honest Lenders are suffering for those "thieves" that should never have been able to be in the business....Dishonest Bastards
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