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Political Analysis: The Consumer Financial Protection Bureau Is Taking On the Mortgage Industry; Real Estate Agents, You May Be Next

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Mortgage Professional America | 13 Jul 2012, 11:24 AM Agree 0
As housing professionals, we are accustomed to working in silos. As Realtors, we focus on our channels of business and don’t give much thought to other members of the professional housing community.
  • Steve Reeves | | 13 Jul 2012, 02:45 PM Agree 0
    can anyone name a sales profession in the u.s. that has the government involved in how sales people are paid? why is the home mortgage origin. biz (so far) the only one? this administration is destroying free competition. the next time i buy a new car, will the sales guy's commission be dictated by obama-dodd-frank?
  • Time4change | | 13 Jul 2012, 06:17 PM Agree 0
    This article pretty much says what I've been thinking and saying since the CFPB was formed. I'm all abut consumer protection; I just don't think this is the right way to do it. Free enterprise is the only way to protect consumers. If mortgage originators must be paid exactly the same, then where does it stop? Would not everything a consumer consumes be at risk that they are perhaps being taken advantage of. No matter how I try I simply cannot justify what has been done to the mortgage business by Washington. Exept for NAR I'd say the writer has an excellent point. Guess we'll see how powerful NAR is.
  • Bryan Buck | | 14 Jul 2012, 05:13 PM Agree 0
    Cordray's unconstitutional "recess" appt. is another trampling of the constitution by the current presidential administration - where is the outrage??
  • Steve0 | | 14 Jul 2012, 05:31 PM Agree 0
    Already as a small business originator I am struggling with the current compensation rules already. How do I remain profitable and ensure my people continue to earn a decent living and don't starve? The short answer is it is nearly impossible. Compensation rules are so difficult already that if I set an LO compensation plan too high then my company runs the risk of not retaining enough revenue to continue to survive. Of set it too low, then often times, especially on lower balance transactions my cost exceeds the final net revenue. And if I elect a borrower paid transaction over lender paid then it completely changes the compensation rules once again making nearly impossible to have any rational plan which actually works to balance business with employee compensation. (This is despite the fact that the money basiclly still always gets funded in relatively the same channels) In the end in order to keep people working and making any sense of a living compensation plans must be such there is no avoidable way to close some transactions which are not only unprofitable but actually are losing money. Yes losing money, imagine a business where your are intentionally forced to operate in a manner which
    you know will not just cost you, but will create a loss. 

    There is no business which can survive this for a long period of time and the small business originators are no different. The current course we are on will make what's already nearly impossible virtually impossible to survive. After 15 years of blood, sweat and tears, small origination shops like myself will disappear and there will be nothing anyone can do at that point to fix the onslaught. Now more than ever we all need to stand up and stand against this continued insanity. This country was built on enterprise and entrapinaureal spirit, and those theologies and principles are deteriorating and being stripped away before our very eyes. We must not ever turn a blind eye to this idiology, if so then God help us because we are all doomed.
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