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Warren: Big banks should stop using smaller ones to weaken regulations

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Mortgage Professional America | 16 Feb 2015, 08:36 AM Agree 0
In a recent hearing on community bank regulations, the outspoken lawmaker claimed Dodd Frank has helped benefit community banks and small lenders rather than big banks.
  • PR | | 16 Feb 2015, 10:12 AM Agree 0
    More lies from Warren
  • Warren Goldberg | | 16 Feb 2015, 11:18 AM Agree 0
    What world is Elizabeth Warren living in?? Where is she getting this information?

    It may be true that smaller community banks have been more profitable in the past few years. But the profits raked in by the "Big Box Banks" have been RECORD-BREAKING!

    There are a number of reasons which include:
    1) Big Box Banks benefit from economies of scale. The overwhelming costs for compliance per employee are lower when you have 50,000 employees rather than 100 or 1,000.
    2) Because of SAFE licensing requirements, the Big Box Banks all but have their MLO's captive, unable to leave even if they wanted to. (This is ESPECIALLY true in New York.) While MLO's at the Big Box Banks are simply "registered" with the NMLS, if these MLO's wish to resign and go to a small community bank, they would have to be tested and obtain their licenses. While licensing in and of itself is not a bad thing, it is time consuming. Once the Big Box Bank employer learns of their MLO applying for their own license, they are threatened with termination. The result (ESPECIALY in New York) is a Loan Officer who is now unemployed and unable to be hired elsewhere (sometimes for MONTHS) until his licensing is approved by his state.

    Respectfully Ms. Dodd, before making such ludicrous claims which ultimately degrade your credibility as well as insult the thousands of hard-working industry professionals, I suggest you confirm your facts with one of our industry's reputable trade groups, rather than your office's spin doctors.

    Warren Goldberg, CMPS®
    President, Mortgage Wealth Advisors, Inc.
  • JOHN DURHAM | | 16 Feb 2015, 12:11 PM Agree 0
    I find it hard to believe you are sincere. Anyone who has done even a small amount of research into the financial position of TBTF banks has learned they are insolvent (from "off book" bets) and the FED is doing everything they can (buying $Trillions of their hot derivatives, giving them unlimited money at near zero interest) to keep them afloat. Additionally, even though the big banks own Congress and are making the People pay their debts, you are writing the first piece I've read written by anyone who says these banks are in the money. Where do you get your information from, Cracker Jacks boxes?
  • | | 16 Feb 2015, 01:00 PM Agree 0
    John, the senator said community banks were more profitable and came to that conclusion, not the writer.
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