Want to be Patriotic?

Good comment and questions.  At my workshops I point out that the REALTORS® are not mentioned in the news as taking any blame for the financial debacle and I appreciate that, a lot.  At the same time it is a responsibility that too many REALTORS® have abdicated so just between us Real Estate people we are implicitly at fault. 

I coach and teach success.  Successful people take responsibility for their world even when it is unreasonable.  Sometimes you do this just as an exercise to learn how to improve your life and the world around you. 

The mortgage industry in collusion with the secondary market which included government oversight to lend to people based on such loose criteria that this debacle was obvious to many.  Before the lenders did this, less than a decade ago, the lenders had qualifying ratios (like 28/36 for conventional loans, 28% of income without debt, 36% with monthly payments).  This simple formula, if adhered to would have prevented this huge problem.  Should we as Real Estate Agents completely abdicate responsibility, particularly those of us who have been around long enough to know better.  That just doesn't set well with me. 

Notice that in my original blog, I did not say it was our responsibility.  Simply that it was patriotic to now take more responsibility and stop complaining so we are part of the solution and not part continuing the problem. 

One last thought, this one will hit too close to home for some.  Doesn't our fiduciary responsibility which includes care, loyalty, disclosure, and accounting require us prevent our Clients from entering into mortgage payments that may over stretch their budget.  I realize that this means that we get involved in the financial qualification process to the extent that we are aware of what is going on.  I realize this is a new set of skills for a lot of Agents and rusty ones for many others.  I realize some Buyers will not want us knowledgeable of their finances.  I am also aware that many others will be more confident in their decisions because they trust us more than anyone else in the transaction.

I also know that this is an old fashioned way of doing business.  Old fashioned enough to have prevented the terrible situation we now find ourselves in. 

The above comment is from me, I apoloigize and thought I was directing the comment to June. Sorry for any confusion this may cause people that are reading the thread.