I'm still miffed over that comment in the September 11th cover article in Business Week entitled "Nightmare Mortgages" which said, "Banks tapped an army of unregulated mortgage brokers to do what needed to be done to keep the money flowing, even if it meant putting dangerous loans in the hands of people who couldn't handle or didn't understand the risk."
Unregulated? You've got to be kidding me! On which planet are mortgage brokers unregulated? Furthermore brokers aren't lenders and lenders are very much more regulated. I will admit that I don't agree, at ALL, with the viewpoints shared in the article about the Payment Option ARM loan solution because it blames the loan and the lender ... not the borrower. Agreed there are unscrupulous loan originators but their broker and the lender are ultimately responsible for their actions even if not directly. And you had better believe there is not one unregulated lender in this nation making loans on primary residences.
I'll tell you who is unregulated. Reporters, journalists and writers. That's who is unregulated. They can write anything they want and then claim "freedom of the press". Just becuase you read it in a national publication does not give any indication that the information contained therein is accurate.
The truth is mortgage brokers are the best place to go for a loan and if you're not in the industry you may not have heard of the report "[The] study found the APR (annual percentage rate) on broker-originated first mortgages were 1.13 percentage points less than loans originated by lenders, and 1.98 percentage points lower on second mortgages." http://RealtyTimes.com
And by the way, I constantly push for the requirement for all loan officers, mortgage originators, whatever you want to call the person who accepts the application and suggests the loan product to the borrower, to be regulated (licensed, bonded, continually educated, etc.) in every state.
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