So many people want to pass the buck,to blame anyone but themself for the mortgage crisis. The most maligned being the individual Loan Originator, LO. The LO's are an easy target because some of them are guilty with regard to their clients, but the same can be said about any and every identifiable group.
The LO's job is rarely understood.Worst of all, LO's are vulnerable because in most states they are not even required the 90 to 180 clock hours of pass the exam class that the real estate agents call education! When the finger pointers want to it's easy to find Bubba, LO to represent all LO's.
No less than the esteemed Lenn Hardly said in IT'S A MORTGAGE MESS, NOT A REAL ESTATE MESS. A DEFENSE OF REAL ESTATE AGENTS
"All the mortgage loan officer has to do is "SAY NO"!... in all the years I've been selling real estate, I've never known a loan officer who couldn't say "NO"."
Please consider following is from:The Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) protect you against discrimination when you apply for a mortgage to purchase, refinance, or make home improvements.
Your Rights Under ECOA
The ECOA prohibits discrimination in any aspect of a credit transaction based on:
race or color;
age (provided the applicant has the capacity to contract);
the applicant's receipt of income derived from any public assistance program; and
the applicant's exercise, in good faith, of any right under the Consumer Credit Protection Act, the umbrella statute that includes ECOA."
With the possible exception of non-Hispanic white men no one can be turned down for loans they are qualified for! Even this group is protected! They could be married to a woman, a protected group. They could be gay, a protected group. An their economic power alone assures them equality. So as a practical matter LO's can't say no to anyone.
LO's don't have the right to say "NO!"
If an applicant qualifies for a program the LO's company offers the applicant can not be turned down!
When an LO turns down an applicant he has to provide a form called "Statement of Credit Denial" no where is there a check box for "Stupid idea!"
If an applicant ask what do you recommend the LO can show only those programs he recommends. If an applicant ask "what do I qualify for" or worse "I want" the LO has no choice!
There is enough quilt to go around, but lets not add to the problem with baseless finger pointing!
William J Archambault Jr
The Real Estate Investment Institute