Yes, and after several months, "huddled" for half a day to review and finalize their findings so as make this brilliant decision. What, were these inept imbeciles sleeping for the last several years at the wheel while the train was running away? Or where they craftily creating by design, conglomerates, and their own futures via job security. All along, with full knowledge that their industry would make untold millions in the interim.
Their righteous indignation is days late, dollars short and for supposed, industry gurus, pathetically transparent.
What a set up. MB licensing is Not the result of happenstance economics. This imho is a well in advance planned next move. Should have seen this latest mandate coming. Let the created crisis expand exponentially, feign the outrage and proceed to mandated control.
As qualified loan pools dwindle, so must the competition for those loans. By mandating MB licensing, which will eliminate most mortgage brokers in one fell swoop, lenders will be in a better position to procure a greater piece of the now shrinking pie.
Meahwhile, back at the Farm, Lenders who can figure out a way to still maintain some semblance of the appraisal ordering process via their own AMC's gain yet an even larger piece of the pie. Further reduction of appraisal fees. Not a beat missed in the one stop shopping.
"Paulson said state and local regulators need to toughen oversight of all mortgage originators. Sloppy lending practices including loans made to homeowners with no requirement of proof of income, are widely blamed for a soaring tide of foreclosures, especially among subprime mortgages held by people with the shakiest personal credit."
Be glad they don't know USPAP, then they would know it like Satan knows the Bible, and trick all the weaker appraisers into believing what THEY say it means....
This is the deal. You can cite economic history, left wing, right wing, whatever...
People are in busines to make money. Regulations are put in place to protect victims, but at the same time, they limit business from potential profit.
The businessman who is going to "make it" is the one who figures out ways to get around regulation, avoid it, or make a new product that doesn't fall under it in order to make the maiximum amount of money possible without being hindered by regulation.
It is a game of Gotcha! and right now, the tide is tilting toward business and away from regulation, as the AVM, and AMC are largely unregulated, 3 headed creations of innovative business men trying to make an unhindered profit. Once these innovations create victims, the regulaotors will step in and hinder the unrestricted profit.
"Business" ins't a person. It has no feelings, no morals and no responsibility to anyone.
Business people end up just like that in the long run if they aren't held in check.
Innovations in business often borderline on criminal, as they were created to avoid current laws and operate in a lawless state of being.
You can't blame anything or anyone for trying to innovate the rules, so to speak, and market a new way of business. That is where the true profit motive lies and that is why we have these periods of transition.
But trust me, if I were in another line of work, I would be trying to innovate a system that would enable my company to make as much money as possible, without breaking the law. This may lead me to uncharted territory that is largely unregulated by the government.
Originally posted 9/10/2007.
Posted today, by Paulson:
Regulation needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it," Paulson said.
Just thought it had a familiar ring to it...
somebody tell the presiden't guy to stop plagairizing me.