Interesting point about financial education.  That is why Trump University was founded.  We even have a class named Home Buying 101.  If you are interested in evaluating this class let me know and I can give you access.  I would be interested in hearing your thoughts and to see if this is the sort of education you think is needed.

Josef,

I would be interested in a web link to check it out, perhasps write about it and do a little study to report back to our think tank-- Lance

Here is the link:  http://www.trumpuniversity.com/products/realestate/time-to-buy-a-home.cfm

If you decide you want to look at the course let me.  I will get you acceess.

My experience leads me to beleive that the LendingIndustry has mislead the public riding the bonaza generated in Real Estate in the past few years.  The consumer needs to be aware that many fast-food lenders are in sales and have quota's to fill and commissions to make and are not career-minded.  I couldn't expect the general consumer to have a complete grasp of the many products lenders offer but do expect my lender/broker to show me the products that fit my needs and make me aware of the "strings".

I think financing education for consumers is an excellent idea.  There is already a training program for First Time Homebuyers in NE Arizona.  I took the class several years ago to see what it was about and the help me assist new buyers to make good decisions.  I found it very helpful.  

The question is, would the consumer take advantage of it?  Many buyers think they know all there is to know and that they won't make bad decisions.  Of course they never know as much as they think they know and are often the ones who come back later complaining that they got "took" so how do you help know it alls?

Perhaps the various Depts. of Real Estate could put a link on their websites to financing information and questions to ask.  Just a thought.  

Education for consumers is a great idea, but licensing and continuing education for Loan Officers is an even better idea.  Let us look at the "professionals" involved in the home buying process. RE Broker/Agent: need to pass a state exam to obtain a license & continuing education is required; Appraiser: also needs to pass a state exam to obtain a license (educational requirements have been adjusted as of 2008 and the course work required is similar to the number of hours for a college degree) and condinuing education is required; Attorney: 4 year college degree, 3 years of law school, must pass the state bar exam; Loan Officer: needs to work for licensed Broker.  It seems odd to me that the people in charge of selecting the loan program for the buyer doesn't need to be licensed. Loan programs are constantly changing. Doesn't it make sense that a continuing education  program would be bennificial for loan officers in order to keep on top of the changing requirements and programs?  While there are a number of excellent loan officers out there, there are plenty who are terrible and are only looking out for themselves and not their clients. Not to say there are not bad RE Agents & Appraisers out there, there are. But at least they have a licensing board they have to answer to in the case of a complaint. An unlicensed loan officer really has no one to answer to. Luckily, it looks like that is going to change.  http://www.realtor.org/RMODaily.nsf/pages/News2008010307?OpenDocument

Check out this article too:

http://money.aol.com/news/articles/_a/states-launch-mortgage-broker-tracker/n20080102132109990002

John,

Many think it seems odd and are with you, in fact, hearing such conversations across the nation has indeed prompted this article. Lance

Sandra,

I don't know if consumers would take advantage of it, I just don't know, I guess that's why against my best judgment and "freedom and liberty" stance, I suggested a mandatory type class for first time homebuyers? I just don't know, only posing the question. Lance

There are a ton of home buyer education programs out there, and I am not at all impressed with (a) the quality and (b) the ability to break the lingo down into terms consumers can understand.  I do think, however, that consumers who really want to learn about the process have more than enough choices.  Requiring education would not change anything.

I invest in training classes in order to stay up-to-date with the mortgage industry (FHA, State Regs, Federal Regs, Business Writing, VA, etc.).  I also read trade magazines, blogs, etc. to know the "latest news."  That being said, I am not so sure that certifications and the like lead to anything else other than more revenue for the organization offering the training and tests. 

Jackie,

Wow, yes, the "Industry Buzz Word Syndrome" it is amazing how that ruins things, Lawyers do it, industry does it, it just messes everyone up. That is a most excellent point, and coming from a Franchising Industry background, all of the language in our documents and dealings is required by law to use common language, not legaleeze and buzz words are also considered taboo now. You know what, it actually works well that way because folks do not have hard feelings, and it takes away excuses later like;

• I did not understand
• What does that mean
• I was tricked

Well, maybe requiring education might not help anything, still I as a taxpayer, and responsibile real estate investor, did not buy at the top of the market, nor would I take out a mortgage that could not be paid. And thus, I am somewhat upset at any talk of bailout for those who did, for whatever reason. So, you know where I am coming from. Indeed, you present some very good comments here and yes mandatory is a HUGE word and I just hate government regulations and mandatory anything these days, maybe I am becoming a Friedman Economist in my old age (40).

On your second paragraph, I applaud your contributions to the industry, and would say this as a Franchise Consultant. "We need to Franchise You" because if there would have been 2,000 of you with your program during the "dot com like" housing run up, it could have been mellowed out a bit and maybe my tax dollar and the entire US economy would not be at stake now.

Sincerely,

Lance

PS - I am now going to subscribe to your blog, thank you very much for your comments and enlightenment. I advise all my dozens of subscribers to my blog to do the same and subscribe to Jakie's "The Mortgage Virtual Assistant's Blog"