My Photo

Loan Originator Resources

« Welcome Back! | Main | Should You Promise Referrals to Financial Planners and CPAs? »

Comments

Kim Willoughby

I read the B.W. article and was shocked at the bias! Although, considering how biased the media is in general (housing bubble?), I don't know why I was surprised! Thank you for this posting, I will be sharing excerpts with my business partners and clients, as I remind them that my focus is their best interests.
However, we must remember that the borrower, too, bears some responsibility for the choices he/she makes. All too often people hear what they want to hear and then claim, "no one told me" when the payment changes. What the article failed to mention is that the borrower signs documents that outline and state the terms of the loan. Any borrower who believes a loan officer who tells them ANYTHING different from the documents their signing, is abdicating responsibility for their own financial life.
I'm so proud to be a part of the Mortgage Coach "family", because by investing in this valuable tool, we are all committing to integrity and responsibility in our lending practice.
KEEP UP THE AWESOME WORK!

Matthew Bowe

Dave... great post about a topic that needs to be dealt with on many fronts.

Kim's right on that in our society the media, in general, seems to feel that the average citizen needs protection from themeselves... individuals have no responsibility if they are a victim. The media needs a bad guy in order to sell. Emotion sells. Blame sells.

I was disappointed but not surprised by the sensationalism of this article's first 1/3. It's almost as if an editor wrote the first part and an analyst wrote the second. The back end analysis of how the industry profits is pretty right on.

I do agree with the article's pointing some of the blame at the short term thinking of the lending industry. Many of my peers I've worked with have been richly rewarded to the tune of 3 points on loans where they sold payment, not responsible management. I've worked for 2 of the big 7 lenders and they have no policy in place for educating clients at the retail level, let alone the wholesale arena.

Mortgage Planning as a Practice is a shining star in an industry that will go through another round of "trust re-engineering." For those with a clean conscience and a true MP mindset, this is a time of great opportunity to earn business from what will be a large pool of very disillusioned borrowers.

Jim McMahon has educated his clients for a long time that a mortgage is a financial instrument. Now is the time when the consumer needs qualified, educated, and principled, and preferably Certified, Mortgage Planners.

Matthew Bowe

One of the major consequences of a lack of self-regulation as an industry is we open the door to justifying the actions of legislators and lawyers. Looks like the legislators made the first move:

http://www.inman.com/hstory.aspx?ID=56972

Shawn Buxton

Are you guys kidding your selves or what? "If a homeowner can’t afford the fully indexed payment and isn’t going to actually increase their savings to offset the lower monthly payment, then they shouldn’t be using an Option ARM." I work at a national top ten subprime lender that buys the crap you guys are selling. These people call me all day and NONE of them have saved the monthly savings and invested it for huge profits and benefit. The best way to get to a "freedom point" is to stay away from stupid financial scams like this and act your WAGE. Don't get people into houses they can't afford and investors into houses they can't carry.

You tell people the payment is fixed and gloss over the fact the rate adjusts IMMEDIATELY and off you go to cash your checks. Perhaps you should go back to selling used cars where you belong.

Shawn in KC.

Charlie

Where can one get an online copy of the business week article about the "Toxic Mortgage". It looks as thought the link is now broken in this blog.

The comments to this entry are closed.