Before the housing crisis, many originators were too comfortable with the old system. But has the pendulum swung too far in the other direction?
By David Lykken
Special to MPA
A few years ago, when we experienced the housing crisis, many of us tried to place the blame somewhere else. Of course, there probably were many reasons for the recession that had nothing to do with the mortgage industry, but we cannot rightly deny the role we played.
The recession was due in a large part to our complacency. We had gotten comfortable with issue bad loans and endorsing poor policies. We didn't want to period of success to end, so we ignored the looming dangers of our behavior.
Now, it seems the pendulum may have swung to far in the other direction. Regulation has begun to run rampant in our industry, and it may be having an adverse effect on the economy. Yet again, complacency is our enemy. Of course, I believe wholeheartedly in keeping with compliance and honoring the regulations that have been set. But, too many of us are simply getting comfortable with the new system and aren't doing much to change it. We have a democratic process in this country for a reason. Why don't we use it?
In our industry, there is a unique opportunity to change things for the better in getting involved with the Mortgage Action Alliance. There is strength in numbers and, if we will stand together, we really can make a difference. As usual, it all boils down to our willingness to try.
Webster defines complacency as, "self-satisfaction especially when accompanied by unawareness of actual dangers or deficiencies." If there is one thing holding back our industry from success, this is it: we must overcome complacency.
David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.
Special to MPA
A few years ago, when we experienced the housing crisis, many of us tried to place the blame somewhere else. Of course, there probably were many reasons for the recession that had nothing to do with the mortgage industry, but we cannot rightly deny the role we played.
The recession was due in a large part to our complacency. We had gotten comfortable with issue bad loans and endorsing poor policies. We didn't want to period of success to end, so we ignored the looming dangers of our behavior.
Now, it seems the pendulum may have swung to far in the other direction. Regulation has begun to run rampant in our industry, and it may be having an adverse effect on the economy. Yet again, complacency is our enemy. Of course, I believe wholeheartedly in keeping with compliance and honoring the regulations that have been set. But, too many of us are simply getting comfortable with the new system and aren't doing much to change it. We have a democratic process in this country for a reason. Why don't we use it?
In our industry, there is a unique opportunity to change things for the better in getting involved with the Mortgage Action Alliance. There is strength in numbers and, if we will stand together, we really can make a difference. As usual, it all boils down to our willingness to try.
Webster defines complacency as, "self-satisfaction especially when accompanied by unawareness of actual dangers or deficiencies." If there is one thing holding back our industry from success, this is it: we must overcome complacency.
David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.
