made by the president and CEO of the Florida Bankers Association, and reader response was, shall we say, impassioned.
On the Fox News show Sunday Morning Futures
, Florida Bankers Association President and CEO Alex Sanchez claimed that regulation was driving smaller lender out of business, while comparing mortgage brokers to payday lenders and saying that brokers were barely regulated.
“One of the concerns that we have is that the (Wall Street) Journal reported in March that $31 trillion has moved from the FDIC banking world, which is very regulated, to the non-regulated shadow banking industry,” Sanchez said. “That’s bad news for Americans. These are payday lenders, these are mortgage brokers. No one’s really basically regulating these folks, and when Americans have to go to these types of financial providers, that’s bad news.”
Well, MPA readers were not amused by Sanchez’s comments. Many pointed out that brokers are subject to many disclosure and compensation regulations bankers don’t have to deal with. Others demanded Sanchez apologize.
“Very misguided Mr. Sanchez!!” wrote MPA reader MIKE
. “We have to disclose every nickel we make, can't even lower our fee to compete where Mr. Sanchez can bank 6 points on a FHA
mortgage where Brokers share the 6 points with the consumer, I see it EVERY single day.”
“I don't recall mortgage brokers ever having to pay the largest settlement to the government in US History, $16 BILLION, a la Bank of America, for screwing borrowers,” said another forum poster. “Perhaps Al ought to mind his own glass home before throwing any more rocks.”
“He knows we are better at originating mortgages than they are and he's trying to prey on consumer fears in a sad attempt to scare people away from brokers,” said MPA reader Michael
. “We are very regulated, licensed, and audited to make sure that we are following all of the same rules and regulations the banking industry has to including AML/SAR. It was bankers and Congress that caused the mortgage ‘crisis,’ but he's beating the same old tired drum about how ‘scary’ brokers are. What we are is educated, regulated, serious originators of quality mortgage products ... and proud of it!”
What do you think? Does Sanchez owe mortgage brokers an apology? Should he publicly retract his statement? Tell us in the comments below, or on the original forum thread.
A couple of days ago, we reported on some