'Brokers have always been complacent and lazy'

by Ryan Smith17 Sep 2014
On Monday, an industry leader urged mortgage brokers to get more involved if they want to see the CFPB change compensation rules.

NAMB Government Affairs chair Rick Bettencourt, speaking at the association’s annual conference, said the CFPB wasn’t taking brokers seriously because they weren’t making their voices heard.

“We have 5,300 members, and we recently did a survey where we went out to our members and we got 75 responses,” Bettencourt said. “That’s pretty bad.”

Well, that certainly got MPA readers talking.

“75 responses from 5,300 members!? This speaks loud and clear. Mortgage brokers have always been and always will be complacent and LAZY!!!” wrote MPA reader Michael. “They just will NOT get involved, they want someone else to do it for them. This has been their history during the 30 years I have been in this business. I hate to say it but the questions I heard from those attending the Las Vegas convention were an embarrassment! Questions that only demonstrated that all too many in this industry DO NOT know the rules that regulate us, and do not know product guidelines. Many of the statements made by these attendees, and sadly some of the speakers, demonstrated that many of them are still operating on the dark gray side of honesty, integrity, and ethics.”

But other readers defended brokers.

“A level playing field would be nice, by requiring the banks and credit Unions to disclose their (compensation) on the GFE & TIL!” wrote Mortgagedan. “Although, now that I think about it, customers may see those huge numbers and run away, in favor of us ‘tricky’ brokers.”

“What can I say....Small broker originators do not have the financial strength and clout, that which bankers and banks enjoy,” wrote Mary. “Both Institutions have beaten the broker/originator down so hard and for so long that the public perception of our industry is very negative.”
What do you think? Is it a case of lacking the ability to be heard, or lacking the willpower? Has the industry gotten too lazy to defend its own interests? Let us know your thoughts in the comments below.


  • by jnvaz | 9/17/2014 9:41:15 AM

    Stating that brokers are lazy and uniformed is representative of most of the non broker community as well as the regulators. As a broker having to maintain the same level of compliance and documentation and being subject to the same audit requirements has created an overwhelming job load. Brokers are making less than bankers and therefore do not have the resources or staff to be as involved in fight and continue to make a living. Im guessing that most brokers--like us--have previously jumped in the ring in the past and dedicated time, resources, and funds to the cause--only to be totally ignored and even blamed for all evils in the state of the union address by our well versed in mortgage industry president. At this point we are struggling to keep alive and dedicating time to fight we cant win-until the democrats get their hands out of everyone's pocket and move over for republican led regulation. Apparently the reader / slammer is just as ignorant and mis informed as the brokers he points the fingers at.

  • by eam0313 | 9/17/2014 9:45:30 AM

    the reason brokers cannot get involved is because for years we have been hanging on by a thread financially. we do not have huge companies with cushy jobs that allow us to even be out at these events. we as owners have been forced to write mortgages to maintain our companies. we are busy out hustling a mortgage to stay open and feed our families and offer our employee's a chance to do the same. Banks are not constricted to a 3% rule yet the broker is. in reality the way QM is calculated we are in fact constricted to less than 3% and with wholesale lenders (banks) fearful to be too close to the rule they set maximums for us at 2.5% at most and 2.75% at some. so essentially based on a $200,000 mortgage the broker can make a maximum of $5,500 yet the bank can make a maximum or $6,000 upfront and unlimited SRP which is usually about another 3% for a grand total of $12,000 available to be made. so if you ask why the broker is not involved, the answer is we cannot afford to be involved. we are competing to maintain employees who demand a higher compensation in the current times because banks/lenders are offering them higher splits because they have more funds to play with. to keep our employees the broker must give up more to them. thus again squeezing the broker even tighter.

  • by Tim | 9/17/2014 9:46:14 AM

    Personally, I have responded to every poll put out by NAMB. However, when you are facing an 800 pound gorilla CFPB that has made it very clear that is does not value what we do, how hard we work and repeatedly discusses how we are the scourge of the industry, there is little reason to respond. They don't care what we think anyway and we know it.


Should CFPB have more supervision over credit agencies?