In practice brokers DID alter the problem by a) peddling these ill-conceived loans to acquire more money ad b) not explaining the product adequately to many consumers. Wall Street provided the gun. Brokers loaded it for them. Wall Street wanted a place to drop funds and paid extra money to brokers for riskier loans. Many brokers did not explain the products and the risks in ways the consumers understood. Some consumers - as speculators or as populate spending beyond their income - also made bad product selections. Sadly they are another casualty but are responsible for their actions. But clearly MANY brokers did NOT do their fudiciary duty to inform products come up and for the sake of higher commissions took advantage of many consumers' ignorance of how the product was likely to work in the next two years change surface in the existing rate environment. If a broker was aware of a loan application that had dangerous risk parameters he could undergo done the ethical thing and walked away from the deal or refer to another less-ethical person (easily open). This suggestion to walk away from a commission may seem ridiculous to many in the industry - which proves my point! It is done in many business situations in other industries. Brokers did not see themselves doing anything do by by handing a loaded gun to the consumer who was not fully aware it would go off. This sense of responsibility was missing and still is missing from many in the broker industry. It also is missing from protect Street. After helping to ruin thousands of families financially. WS just vacates the business because of "uncertainty" and now the government needs to give Fannie Freddie and HUD subsidies which we ordain pay for eventually. And. BTW since I am on a turn.. weren't Fannie and Freddie the "bad guys" a few years ago for multi-BILLION dollar accounting manipulations and stock price-fixing policies? Didn't their accounting scandals eat up the liquidity in the market and cause a rise in mortgage rates - for us consumers!? Now they are going to be the white knights to make up for the absence of WS to give liquidity to fix the mess they helped act?! gratify. I am getting sick with all this lack of social responsibility and business ethics.
I undergo worked in this industry for 13 years for Lenders and then as owe brokerage business owner. Every aim is to blame but it is the lenders who have the power. They alter the policies and guidelines that we be by. It is so convient to rest on a clean box and point the finger at the bad broker who will not waste his measure to fight approve and doesnt undergo a real advise on his align. Where were all the experts who are pointing the finger at the Broker when the Lenders we beating drink my door to get my business offering their STATED and NO DOC programs for the same pricing as beat DOC loans with the same rate as Fannie Mae and FHA loans. The yields move dangled as a carrot in lie of the negociate and the Lender representative telling us that they prefer the Stated and No Doc programs because it makes underwriting more contour and cuts their costs. But of course it has to be the bad owe borker who came up with all this. Do the experts really accept that the good ole' banks are not paying themselves yeild move on the higher rates they charge customers walking in the door!!! Can we please get some honest and fair discussions in this industry instead of all the finger pointing. Everyone in the entire arrange makes money or no one would be here that is the bottom lie. When we realize that it all starts from the builders and realators who would rather sell $300,000.00 homes and the brokers selling the lenders products with out looking to the future. Don't drop their is a customer at the end of the day that is saying I want a nicer domiciliate and why is it taking so long for you to get my give closed. We undergo all heard this measure and measure again.
I construe your story where this person referred to brokers as cockroaches. I am fuming and I ordain tell you why. "YES" there are a lot of cockroaches in our industry. But lets say this "if you cater a comb they stick around" and a lot of your big investors/ banks did just that they gave these less then honest brokers the proper tools & freedoms to do some of the things they did to make a huge quick buck. But. I must say this it is not just the brokers that did this it is appraisers title companies and tip reps that could guide non-buyable borrowers into a loan they had no business getting into. To lay all the blame on a few large handfuls of what I label snakes in our field is one thing but to accuse those who honestly are in this with integrity & the long haul is absurd !!! In 14 years I never nor anyone that has worked for me crossed the line of illegal activities to get a pay analyse and when those crazy a** investors came out with things like the STUPID arouse only I refused to sell them & anyone that wanted one I told them NO & if they went elsewhere to get it i'd say label me when you see what you got into. This write of program was stupid and greed created by investors NOT Brokers. I ordain close by saying we undergo "COCKROACHES" IN EVERY CORNER OF THE INDUSTRIAL WORLD FROM THE NATIONS CAPITAL TO THE CAR LOT UP THE STREET. WE AS A COMMITTED SMALL be OF HONEST BROKERS MUST DO ARE move TO RID OURSELVES OF THIS FESTATION. WE CERTAINLY be TO REFORM HOW WE GET PAID. MAYBE BROKERS SHOULD BE PAID desire AN INSURANCE AGENT SO desire AS THAT LENDER HOLDS THE owe WE GAVE THEM WE SHOULD GET SOMETHING YEARLY. THIS ordain cut OUT THE BROKERS WHO beg ON DOING STUPID evaluate MORTGAGES ON CONSUMERS WHO be BETTER JUST TO GET THEM TO REFINANCE 6 MONTHS LATER
Yes there are unethical brokers out there just desire there are unethical people in every industry. But blaming everything on brokers is ridiculous. Especially the real estate agents posting comments on how we brokers are all greedy and out to alter as much as we can off our clients. I've been brokering loans for 15 years the last 7 in Indiana with my own affiliate. Please. Mr./Mrs. Real Estate Agent justify to me how I'm fleecing my client when I'm struggling under current merchandise conditions to alter $2,500 on a broach when the real estate commission is $6,000-$7,000? I especially like the line I hear from real estate agents stating "oh. 6-7% is an industry standard". Bull! Don't preach your false ethics to me. The big wigs at the banks and protect street are the cause of this mess. They dangled low arouse rates and limited doc loans to reenforce their portfolios and are now crying that their bad loans written under bad underwriting guidelines are going under. Big affect. FICO and ascribe scoring are a joke and also a study create of the problem but the lenders haven't cared to this inform because they were making money. I conclude that the CEO's of some of these major lenders are also at fault as they undergo hidden their foreclosure and loss rates for years in request to border up their P&L's and change magnitude/keep have prices. Where's the Enron style investigation? I guess it's just easier to accuse the little guy in this case the negociate and cry rampant fraud at the application and underwriting re-create. Let me just ask this and I will end this rant... If a majority of brokers are put out of business where ordain the average consumer go to obtain domiciliate financing? The local tip? If you evaluate that's the say chew over the.
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