There's a new proposition on the table that requires lenders to respond to anonymous Internet complaints. While I am certainly in favor of greater transparency in our industry and greater consumer education, I think this proposition is a bad idea.
Many of the comments left online are antagonistic and unjustified. Reasonable people ignore such comments, and they usually don't amount to anything. However, when the organization being attacked responds to the complaints, it validates them and people start paying attention.
Once the organization is forced to join in the conversation, it can very quickly get blown out of proportion. Requiring organizations to respond to all complaints on the web can lead them into unnecessary public relations disasters. Contrary to its intent, this proposition is not good for consumers. When good companies go out of business because for bad reasons, good people won't be able to get loans.
David Lykken is 40-year industry veteran who has been an owner operator of three mortgage banking companies and a software company. As co-founder and Managing Partner of Mortgage Banking Solutions, David consults on virtually all aspects of mortgage banking with special emphasis executive leadership development, corporate strategic direction and implementation as well as mergers & acquisitions. A regular contributor on CNBC and Fox Business News, David also 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. Recently he started producing a 1-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across America.