Yes, you read the headline correctly. For those of us doing business in California in Real Estate and Mortgage finance things appear to be heading towards further uncertainty as our economic woes continue to pound our state.
Our California Legislature through the Assembly Banking Committee has submitted Assembly Bill 33 which would abolish the California Department of Real Estate, Department of Corporations, the Department of Financial Institutions, and the Office of Real Estate Appraisers. Proposal would have all under one new control by setting up the Department of Financial Services.
I am almost at a loss for words as a small businessman who finds himself wondering if many of us will be conducting business in the future or how we will be doing it. I have been in mortgage financing for almost 39 years now, and the last six to eight months have been a real eye opener. We can all speculate or articulate the reasoning for this happening. As a mortgage broker, an ethical one I might add, I see our industry dwindling as both the Federal and State governments attempt to bring change and stability.
I respect the idea of bring stability to our nation, but I truly wonder just how effective our governments are when it comes to running a business so to speak. California itself, is billions of dollars in the red.
I have seen lending standards go from one extreme to the complete opposite. Quite frankly, even though I have been doing this for years and have prided myself on being very knowledgeable, constant changes in our industry whether guidelines, loan amounts or such have left my head spinning. Change is not necessarily bad, but I often wonder if anyone really knows what they are doing.
I have spent years preparing myself for what I am doing now. Last year I opened two new corporations- one a mortgage brokerage. I passed my exams, pay my licensing fees and taxes like most everyone else.
Now I am not normally one who follows any big conspiracy theories, but I do know that banks and their lobbyists are pushing for many things that already have and may continue to dramatically affect how business is conducted. One recent example is the new appraisal format and procedures which go in affect on May 1st. National licensing, in addition to state licensing is in store for those of us in lending. The licensing itself does not scare me, but some of the requirements within the framework does.....potential net worth proposals alone would put many of us out with nowhere to go but the big banks if we could secure a job among the thousands of candidates vying for work.
Below is a link to my continued education source.......No I am not putting in a plug....but Duane did do a piece on this new legislative change. Read for yourself what just might be in store. It also has a link to the Assembly Bill and Summary. Scroll to the left of his site and look for Abolish the DRE
So what's going to be next?
May God Bless Our Nation and Industry
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