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Points and fees cap won't change without broker involvement

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Mortgage Professional America | 16 Sep 2014, 08:23 AM Agree 0
An industry leader says brokers need to step up if they want to see regulatory change
  • mortgageguy | | 16 Sep 2014, 10:36 AM Agree 0
    When the head of the CFPB says publicly “Consumers will not be bamboozled by tricky tactics...” I think we know what they think of us and our business.
  • Griff | | 16 Sep 2014, 10:45 AM Agree 0
    Consumers will be bamboozled by the cfpb and the appraisal independence rule tricky tactics. Bamboozled by appraisers who would be out of a job except for AIR. Consumers who don't have lender choice or being misled by different methods of disclosure.
  • Michael | | 16 Sep 2014, 11:36 AM Agree 0
    75 responses from 5,300 members!? This speaks loud and clear. Mortgage brokers have always been and always will be complacent and LAZY!!! They just will NOT get involved, they want someone else to do it for them. This has been their history during the 30 years I have been in this business. I hate to say it but the questions I heard from those attending the Las Vegas convention were an embarrassment! Questions that only demonstrated that all too many in this industry DO NOT know the rules that regulate us, and do not know product guidelines. Many of the statements made by these attendees, and sadly some of the speakers, demonstrated that many of them are still operating on the dark gray side of honesty, integrity, and ethics.

    Yes, there are a FEW of us bashing our heads against a brick wall trying desperately to make things right and fair; only to get a headache and bleed profusely.

    I did my own study of those attending the convention; most were us old guys with 20, 30, or more years of experience. "Why are we hanging around in this industry" was the questions so many asked by many. The answer, "because we have been doing this for so long we don't know what else to do". Sadly, many of those still hanging around don't even like this business any more. Very few young originators attended. Why did they abandon the industry that allowed them to make more money than anything else they have ever don or ever will do? I would estimate that 90% of those I used to see at previous conventions, weren't at this one. They have either given up or are so unmotivated by the last 7 years disappointment that they are on the verge of giving up.

    And then of course there was a large contingent of missing who are no longer working for a mortgage broker or who have closed down their companies and fled to the sanctuary of the banks and direct lenders; all in the name of non-disclosure and undisclosed income.

    Sadly the consumer is getting hurt the most by Dodd-Frank, the CFPB, and LO compensation regulations.

    Will mortgage brokers ever change their mindset? Will the mortgage bankers with wholesale divisions ever come to the aid of mortgage brokers and put their money and power behind us? Will the National Association of Realtors see the light before the dark finally closes in and put their power and financial clout in our arena?

    I could go on and on here...but I too am tired. The bleeding won't stop, my headache has gotten worse, and .....
  • Mortgagedan | | 16 Sep 2014, 11:50 AM Agree 0
    A level playing field would be nice, by requiring the Banks and Credit Unions to disclose their comp on the GFE & TIL! Although, now that I think about it, customers may see those huge numbers and run away, in favor of us "tricky" Brokers.
    It's also amazing that banks now own their own AMC's and control the appraisal process, again. Wasn't that the whole point of creating appraisal independence, so the banks couldn't control the property values? Last one: What if everyone who originates a mortgage, is actually required to pass the SAFE ACT test, pass a back ground check and maintain continuing education licensing requirements, in order to receive an NMLS#? Why should us Brokers keep all this NMLS licensing fun to ourselves? I'm willing to share.
  • Mary | | 16 Sep 2014, 12:47 PM Agree 0
    What can I say....Small broker originators do not have the financial strength and clout, that which Bankers and Banks enjoy. Both Institutions have beaten the broker/originator down so hard and for so long that the public perception of our industry is very negative. Starting with this Administration putting all the blame of the financial meltdown on the "brokers". There is a reason that Banks are 30% bigger with the CPFB and Dodd Frank rules in place. Bankers do no care since their wholesale departments are built up by the sweat of the broker, then when they are big enough, they become servicers and become our highest competitors. They set up huge call centers leaving very little room for any one else to compete. It seems that is the model which they follow. I can think of a few giant servicers gobbling up our business. Banks are just waiting for this thorn at their side to retire; now they have cart blanche...ultimately, the public is left without protection.
  • $milton$ | | 16 Sep 2014, 04:37 PM Agree 0
    Well put, People. I'm just getting up and going again and believe me that the reason mortgage business is so bad now is because of the inexperience of these new AEs. Talk about ig nor ant. I've been in the industry for 25 years and never have I seen it so bad. Tried talking with these new guys and they couldn't tell me what a stacking order is or how to upload a file into their own portal. It's unbelievable. The only way this industry is going to recover is for the old crew to become more available and assertive.
    We controlled over 90% of the industry before the collapse, and it's our experience that's missing. Business today is here more than many of you think, but the problem is the new breed is lacking in information and knowledge to get the job done. Business is good for someone that can close with the knowledge of processing. I tell you guys to get onboard with your knowledge and information and we can turn this market around. The business is here but it's lacking the experienced people to drive it home. Believe me. We are, were, and is the only way this industry will turn around. Stop believing the knuckleheads in Washington and start doing what we know and do best. Loans. If you were able to survive the fallout of our market and that wasn't easy lets take back what's ours, and that's offering a good quality product and service.
    I've gone around to different real estate offices and they are hungry for people that know the market of providing quality and good programs. Brokers that can put deals together because of years of training and experience. Individuals in this industry over the past 30 years experienced every kind of deal conceivable. We did them all and lets do it again. I know I am. So are you with me?
  • LoanguyNW | | 16 Sep 2014, 11:11 PM Agree 0
    Honestly, as a broker I am making more money per mortgage than I ever have. It used to be that it was fair to charge 1 point in the 'front' and one in the 'back'. Now-a-days, it's either all lender paid comp or borrower paid. I'm happy earning 2.75% on lender paid comp while earning every bit of it. I don't feel that I should be earning more than that per mortgage.
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