My New Blog

Injustice Within The Mortgage Industry

This is a great "GREAT" injustice to brokers, all LOs and the American people. How LOs (Loan Officers) became the fall guy for the large banks and bribed politicians mishaps and poor underwriting guidelines proves the corruption of our political system. Once again, corruption wins over as American’s keep silent and stay ill-informed.

The compensation rules going into affect are not only unethical but the change is happening in prime home buying season in a period of time when our economy is extremely fragile, what are these guys thinking? Seriously, a person would have to be an idiot to make such changes at all, not to mention to make them at such a time. Studies have shown that brokers more times than not give better loans to consumers than depository banks. Not that the opposite does not sometimes occur but I've been on both sides of the game and unless a client is grade a perfect a bank will not normally give better terms. The changes are already resulting in higher loan fees and I suspect that much higher turn times are to follow until the market adjusts.

Timing: Spring time is prime home buying time, why is this important? These changes are happening on April 1^st, that’s just a few weeks away. At the present time Loan Officers are leaving the industry left and right causing staff shortages, increasing underwriting timelines and less than qualified Loan Officers are filling the gap as incomes drop. Can our fragile economy handle a freeze in the housing market due to logistic red tape? Only time can tell but the stakes are high, much bigger than people think.

Beyond the mortgage industry this move sets a president for the Federal Government to cap others income. Who is next? Who else will have their income capped so that the big boys can make more money? Doctors, Lawyers, Teachers, BUSINESS OWNERS. When is enough enough? When will you speak you mind?

Samuel Morales

Mortgage Originator

www.YourLoanOfficer4Life.com

Texas -