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'Mortgage professionals' feel persecuted.

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Caligirl

Senior Member
Joined
Jan 27, 2006
Professional Status
Certified General Appraiser
State
California
I feel so sorry for the 'mortgage professionals' who might have to sell 'appropriate' mortgage products to consumers rather than high-risk loans, and become licensed. :cryingsmiley:

Six trade groups on Tuesday told lawmakers shepherding a comprehensive package of housing legislation through Congress that the bill would impose too-strict standards on lenders, requiring them to determine what kind of loan is best for each borrower.


The letter also criticized a portion of the bill that creates a nationwide licensing system for mortgage brokers and loan officers.



http://money.cnn.com/2008/06/17/real_estate/senate_bill.ap/index.htm?postversion=2008061718
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
While the idea of "predatory lending" is personally revolting, who, other than the lender, determines which loan program is "best" for a borrower? Granted that it should not be too hard to figure out that a sub-prime borrower with limited resources should not be given an interest-only, 110% LTV, ARM. But if underwriting guidelines permit such an action, how can that come back on the LO?

It is also important to recall that the reason for these lax lending standards is the government's own policy of making homeownership "affordable" for those with limited resources. The solution has to start at the top and work its way down.
 

Walter Kirk

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Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
I think that a big part of the problem is when mortgage loans became "products" to be sold like used cars instead of as important and serious financial decisions. By the same token professional real estate appraisals were reduced in importance when they were considered "valuation products".
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
It is also important to recall that the reason for these lax lending standards is the government's own policy of making homeownership "affordable" for those with limited resources.

I think that a big part of the problem is when mortgage loans became "products" to be sold like used cars instead of as important and serious financial decisions.

My conspiracy theory is that "the government" played along with the big lenders in creating a mortgage machine designed to sell pools of loans as mortgage backed securities rather than having any concerns about sound banking policies and appropriate loans based on credit worthiness, collateral and the ability to eventually pay off the loan.
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I see the MB's side of this.

If you're too stupid to undertand the terms of a contract, then don't sign it.

Most these "victims" got what they wanted......a low/no down loan with cheap payments. They gambled on a market that would continue to go up and they lost. Nobody held a gun to their head.

They either:

a) Read the contract and understood it

b) Read it and didn't undertand it

c) Or didn't read it.

My bet is not many could pick "a" as their answer.
 

Tudor

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Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Waaaa frikkin Waaaaaa. They only cared about themselves and how much money they could make regardless of the consequences.

I think many of the TRUE mortgage professionals will like this idea, since the mortgage "skippy" has no clue how to do this. If this passes, then the mortgage skippy may be on their way out.
 

moh malekpour

Elite Member
Joined
May 25, 2002
Professional Status
Certified Residential Appraiser
State
California
I feel so sorry for the 'mortgage professionals' who might have to sell 'appropriate' mortgage products to consumers rather than high-risk loans, and become licensed.
:cryingsmiley:

Not in California. California assemly is in the pocket of mortgage industry.

http://www.latimes.com/business/la-fi-mortgage19-2008jun19,0,4590951.story
Machado worried that cracking down on mortgage bankers and brokers could dry up credit and "restrict the accessibility to home loans for the very people" lawmakers were trying to help.

Consumer advocates were outraged.

"The system does not work in favor of the consumer," said Kevin Stein of the California Reinvestment Coalition, a group that promotes economic development in low-income communities. "The lobbyists for the industry outnumber the consumer groups. They seem to have greater access [to lawmakers] and give more money."
 

Caligirl

Senior Member
Joined
Jan 27, 2006
Professional Status
Certified General Appraiser
State
California
Waaaa frikkin Waaaaaa. They only cared about themselves and how much money they could make regardless of the consequences.

I think many of the TRUE mortgage professionals will like this idea, since the mortgage "skippy" has no clue how to do this. If this passes, then the mortgage skippy may be on their way out.

A post I can agree with.

Licensing would at least get rid of the *convicted felons* who have been working in the mortgage business.
 
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