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Originator CEO says breakup of 10-year Wells partnership a good move

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Mortgage Professional America | 29 Jul 2013, 06:43 AM Agree 0
The CEO of a mortgage company which has seen its joint venture with Wells Fargo broken up has said the move was in the best interest of his company's customers
  • Larry | | 29 Jul 2013, 09:09 AM Agree 0
    We all knew that JV's like these were clearly loopholes in the RESPA but allowed to exist because big banks and big real estate firms were involved and along with big business comes big money and we all know what comes with big money...big corruption. Only now does this company say that its right for their customers, only after the Dodd Frank put the hand writing on the wall for them.
  • A. Adams | | 29 Jul 2013, 01:34 PM Agree 0
    Larry, they say the uneducated are prone to believe conspiracies. Fact is the mortgage crisis WAS caused by BIG government...NOT big banks and big real estate firms. They did joint ventures as way to better serve their customers with lower rates and faster closings. IF they can offer better service and rates, they make more $$$. Now maybe to you and to Castro's Cuba making $$ is a bad thing. But if I'm going to fight traffic everyday to get to work, I'm going to make $$. Check your facts before looking like a Kool-Aide drinker. Dodd Frank WILL...WILL raise rates for consumers. Ever heard of G-Fees??? Look it up. There is a good example of "big gubment" at work.
  • Cory | | 31 Jul 2013, 12:01 AM Agree 0
    A. Adams, I disagree. Government created a climate through deregulation that was ripe for Big Banks and Big Lenders like Countrywide, Aurora and Lehman Brothers to create exotic mortgage products like SIVA, SISA, and No-Doc mortgages as well as Option ARM's and sub-prime, and then sell these B and C quality paper to investors as AAA investments. When given the opportunity to have such mortgages the public ate them up. I don't know about you, but I had people calling daily and asking for these mortgages after they saw Countrywide and World Savings ads. And were there LO's who steered clients into stated income and no-doc mortgages just to make the deal happen? Yes, there was.

    The governments role in the crisis was deregulation and not enough oversight of the Big Banks and other players in the game. Given the opportunity to run free without accountability except to stock holders, they did. And the result is what we got.
  • Denny | | 22 Aug 2013, 03:55 AM Agree 0
    Lets see how this unfolds. I think Randy is confused. Wells dropped all JV's. Why, well they are chilled by all the RESPA Section 8 Challenges coming out of the woodwork against smaller targets. Even L&F-Prosperity has a class action suit over this. Lets face it, one stop shopping is good and convenient but it sets the table for abuse of innocent consumers when all partners in the operation profit as a single unit. This is just like government. Balance of power, separate the service providers and make them individuals. Then they are forced to work on the consumer's behalf. You are right, big government created the mortgage problem and Wall Street Profited before (bad mortgage origination with huge profits) and after, via gobbling up all of the foreclosures-REO at pennies on a dollar.
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