I guess as an industry we’ve earned that reputation. We sold too many of the wrong types of loans to the wrong types of people. There were too many crooks out looking out for their own paychecks, and not their customers best interests.

Its really a shame because mortgage transactions are usually the biggest financial transaction the average American makes. Mistakes in this industry can really damage peoples lives. I guess the broker charging 4+ points and YSPs didn’t care about anything but their own paycheck. Didn’t the phrase caveat emptor originate with real estate transactions? I guess not much has really changed in the past 2000 years…  Illuman23 December 28th, 2007 at 3:28 pm

Welcome to mortgage brokering and banking 2.0.

Business will never be the same for the mortgage industry. There is a lot of self cleansing going on in this once very lucrative, easy to enter field and also a lot of debate as to what the future holds for the mortgage business.

One thing is for sure. The image of the mortgage professional has been tarnished and what was once a respectable and rewarding career, has been viewed by many in the public as akin to being a used car salesman.

An image that will be very hard to shake in a society that likes to place blame and point fingers.

“From Art Of War…” HE WHO CONTROLS THE GOLD..CONTROLS THE LAND” big banks and wall street controls the gold right and probably forever so they can do what ever it is for them to survive and be in control.” quy December 28th, 2007 at 2:33 pm

Wall Street and lenders control the gold that they in turn gave to their whipping boys (mortgage brokers), and now that the subprime gold has dried up and turned into subprime coal, these same gold hoarding mongrels have now thrown the mortgage professional under the subprime bus.

Talk about Hypocrisy. (the act of condemning another person for an act of which the critic is guilty)

“The greed was two part. The hedge funds and the rating companies. Take a look at there earnings. Just look at the top five. Let me ask you guys and girls a question. Was that not a form of brokering?You think with all of the brilliant minds in Washington they could see the trees through the forest?”Doug December 28th, 2007 at 8:41 pm

It seems that lenders and Wall Street had their way with brokers, made their money, and now that the heat is on, they have washed their hands clean as they now break bread with the US Secretary Treasurer, Hope Now, the President and various high power non-profits such as NeighborhoodWorks and NACA, where many of these lending executives share a seat on the board of directors.

They helped create this massive mess and now, they get to help clean up their mess with the Bush Administration’s Hope Now and these powerful non-profits that have been and will be allocated hundreds of millions, if not billions, in funding for foreclosure prevention. 

Most of these non-profit entities despise mortgage brokers and would like to see that this industry never sells a loan again.

While I am a strong consumer advocate and a huge advocate of non-profits, I feel that an ethical and honest mortgage broker also does their community a good service and is very valuable in the market place. But I know one thing for sure, the future doesn’t look so bright for this industry.

Especially now that the non-profits are in the mortgage game.

This is something that I think everyone in the mortgage industry is not getting. The day of the non-profit has come and it looks like they might very well be taking over this industry for good.

This is a Moe prediction and you heard it first on LoanWorkout.org. (I’m ready to get flamed, bring it on!)

Will this be good for the people of America to have options for mortgages where there is no greed (commissioned salesperson) in the equation? Many predict a plain vanilla loan society in the future, where you can just pick your mortgage off a menu based on FICO and LTV and proceed to closing. Why would a broker be needed if that is the case?

Billions of dollars in financing is being offered to organizations like The Neighborhood Assistance Corporation of America. (“NACA”) is a non-profit, community advocacy and homeownership organization. Yes, BILLIONS!

This is a great organization operated by one of the most aggressive consumer advocates and anti-predatory lending pioneers in the world, Mr. Bruce Marks. Trust me, you do not want to see this man or his organization protesting your office.

The incredible NACA mortgage allows NACA Members to purchase or refinance homes with:

  • no down payment,
  • no closing costs,
  • no fees,
  • no requirement for perfect credit,
  • and at a below-market interest rate.

Everyone gets the same incredible terms, including the below-market interest rate, regardless of their credit score or other factors. NACA also provides free, comprehensive housing services. NACA counsels Members into the extraordinary NACA mortgage using character-based lending criteria that takes each Member’s circumstances into account to determine whether they are ready for homeownership and what they can afford. This is in contrast to risk-based pricing where people are often given loans they cannot afford while brokers and others make tremendous fees and profits.

America’s Best Mortgage!
One Mortgage Product – $10 Billion Committed
5.375
 (as of 12/28/2007)
No Down Payment, No Closing Costs

How the hell is any mortgage broker or banker going to compete with the above terms? They’re not!

Ladies and gentleman, NACA may very well be the future of the mortgage industry and if you do not believe me, then you might as well keep your head in the sand because the sky will fall where you are standing, sooner rather than later.

I write these posts for the ethical and honest mortgage professional (the few the proud), to open your minds and free your souls. I understand you all have families and are people too.  I do not wish suffering for anyone. While I am a die hard consumer advocate and an anti-predatory lending advocate, I am also a people advocate that wants the best for all law abiding citizens.

Stay optimistic but please read the negativity because most of it’s real, very real. Most optimists are hopelessly not realistic and most realist are negative. Try to find balance here everyone. How about optimistically real?

This is just one more news angle that is not being reported on. Maybe I can open your eyes to see the changes that are happening in this business that you all do not see from your side of the fence. While you may not agree with my views and observations, at least you have taken the time to read my blog and see a different point of view from the typical status quo that is being reported on every other mortgage blog on the web.

More from NACA;

The NACA homeownership program is our answer to the huge subprime and predatory lending industry. NACA has conclusively shown that when working people get the benefit of a prime rate loan, they can resolve their financial problems, make their mortgage payments and become prime borrowers. NACA’s track record of helping people who have credit problems become homeowners or refinance out of a predatory loan debunks the myth that high rates and fees are necessary to compensate for their “credit risk.”

Started in 1988, NACA has a tremendous track record of successful advocacy against predatory and discriminatory lenders as well as providing the best mortgage program in America with $10 billion in funding commitments. NACA is the largest housing services organization in the country and is rapidly expanding by growing its existing 30+ offices, headquartered in Boston, MA, opening many new offices nationwide, and expanding the servicesit offers its membership. NACA’s confrontational community organizing and unprecedented mortgage program have set the national standard for assisting low- and moderate-income people to achieve the dream of homeownership.

As I said in my previous blog post titled,  Are Mortgage Brokers Ancient History in 08?, “One things for sure, the smart people that are left in the turbulent mortgage industry waters are devising an emergency back up plan and exit strategy because from the looks of things, the horizon isn’t looking to sunny.”

NACA, coming to a town near you! (good for consumers, bad for brokers)