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Regulation and the problem of escalation

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Mortgage Professional America | 03 Mar 2015, 07:51 AM Agree 0
With regulation being this tight, I can't help but wonder if something is wrong with the system--if legislation has gone too far.

  • Steven B. Harkness | | 03 Mar 2015, 04:30 PM Agree 0
    I am being told by borrowers at closing they feel so "beat up" by the process that they will never do it again. This despite the fact I go to great lengths to explain up front what will happen and when. In 23 years of helping people navigate the labyrinth of ever changing rules and guidelines....I have always been a customer to receiving accolades at closing. Now it is me making apologies at Escrow (yes I attend my signings) for all they have had to endure and they are angry. To make matters worse is their is always the last minute compliance audit that always asks for a clearer copy of one last document before funding. I seriously believe the thing holding many potential homeowners back is they do not want to be put through the process.
  • Marti Greeley | | 04 Mar 2015, 12:01 PM Agree 0
    The rules and regulations should have also included something making the consumers responsible... not all foreclosures were because of lender misconduct. At some point we need to state the fact the Borrowers signed NUMEROUS pages stating the terms of their mortgages and as a Mortgage Lender I assure you I have never held a gun to anyone's head to make them do a mortgage! We have been blamed for everything having to do with the mortgage collapse and we are probably the least complicit...the Investors and Borrowers are just as much responsible...
  • Wm Matz | | 04 Mar 2015, 01:22 PM Agree 0
    Reform has been largely misdirected because it assumed a "blame the product" approach and tries to dumb the process down. There are NO bad products, but there were [and are] many bad matches between borrowers and products. Even criticism of neg ams ignores that the ultimate neg am is the FHA HECM. There are borrowers [e.g. seasonal] who need "exotic" mortgages for proper financial planning but now don't have that option.

    Until we see mortgages as a part of the financial planning process -not a product - we will continue to have bad matches between borrowers and mortgages. But effectively implementing such a revision would require a massive upgrade in eduction and training for originators, especially those at banks, who currently have none.
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