Comment of the Week: Enticing through fear is nothing new

by MPA09 Aug 2013

After a couple months up and running, a couple things have become clear at MPA: Loan originators have a lot to say, and put a lot of thought into saying it.

Our forums have lit up over a variety of issues, with mortgage industry professionals offering opinions, advice or just some old-fashioned venting. With this in mind, we present MPA's inaugural Comment of the Week.

Brian Koss, executive vice president and national head of production for Mortgage Network, a mortgage banker (non-bank) in Danvers, Mass., recently argued that licensing laws discriminate against non-bank originators, and that banks are trying to draw originators away from non-banks by instilling fear over the difficulty of licensing standards. Jillayne Schlicke pointed out that this isn't exactly a new marketing strategy:

"I am shocked I tell you, shocked! Using fear to motivate people to take action? I'm sure no one in this industry at a mortgage brokerage or non-bank lending institution has ever done that before. (Apply now before rates go up! Rates have never been lower!)

I guess fear doesn't feel good when it's used against you. Banks, non-bank lenders, and mortgage brokers are all fantastic places to work, all with their pros and cons.

The Dodd-Frank Act DOES require depository bank LOs to take equivalent education before and after their license. ^Hopefully Koss will learn that this year in his required CE class along with the broker and non-bank lender LOs---unless Executive Vice Presidents aren't required to take a CE class.

Congratulations, Jillayne! You've earned MPA's Comment of the Week! The reward, of course, is the respect and undying admiration of your peers.


Should CFPB have more supervision over credit agencies?