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ATTENTION ALL MORTGAGE PROFESSIONALS WHO DON'T WORK FOR A LARGE, NATIONAL, RETAIL BANK: These Big Banks are Trying to Drive You Out of Business

By
Mortgage and Lending with Los Angeles & Ventura Counties in CA

Yesterday, I read a post by Bill Ladewig titled, BROKERS, If you want to be in Business in 2010, TAKE ACTION NOW.   It was a very good post and I strongly suggest that every mortgage professional who doesn't work for a large, national, retail bank (BofA, Chase, Citi, Wells Fargo, etc...) read this post and act immediately to voice their opposition to this action that is currently underway to drive mortgage broker out of the industry. 

R-1366 eliminates consumer choices by eliminating yield spread premium, which would not allow mortgage brokers to offer consumers no-low cost loans while still allowing banks to offer these loans to the consumers.  This direct bias towards mortgage brokers will not only limit the choices that many consumers currently have by using brokers but many brokers will also not be able to continue to operate. 

Presently, most mortgage brokers can offer consumers more lending options and much better pricing than the large, national, retail banks (BofA, Chase, Citi, Wells Fargo, etc...), which is why these large, national, retail banks are lobbying so hard to get this ruling passed.  This is just another attempt by these big, national, retail bank to eliminate their competition - mortgage brokers. 

For all of you mortgage bankers who think you're safe just because you have funding lines (for now), think again.  Don't think for one second that you won't be next on their list.  As soon as these large, national, retail banks drive mortgage brokers out of the industry, mortgage bankers will be their next targets. 

R-1366 is in the Comment stage until 12-24-09.  Make yourself heard to stop R-1366 

Click Regulation Z - Truth in Lending - Closed-end Mortgages [R-1366] 

Scroll down to: 

•1.      Regulation Z - Truth in Lending - Closed-end Mortgages [R-1366].  

•2.      Submit a comment on this proposal. 

•3.      If you want ideas on what to write you can view all the present comments at:  View comments on this proposal.  Please reblog to get the message out to as many people as possible. 

•4.      It is not necessary to write much because someone is just going to count the number of comments for and against. 

It is so important that all mortgage professionals do what they can to stop the large, national, retail banks from taking our clients choices away from them.  Realtors:  if you have a trusted mortgage professional who doesn't work for a large, national, retail bank (BofA, Chase, Citi, Wells Fargo, etc...), then this ruling is going to drastically affect the way they will be able to serve your clients.  Is that what you want?  Help us stop these large, national, retail banks from destroying the mortgage industry.

Posted by

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 Donne Knudsen

Realtor® - CalState Realty Services

DRE#: 01364050 / NMLS#: 249822 

 

805.2069123

 

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Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance

Los Angeles County  --  Ventura County

© 2010 - All Rights Reserved

Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Donne - Way to get the word out, mortgage girlfriend! I'm waiting to find out if a Realtor's organization is falling in with this same kind of bias - hope not!

Sep 27, 2009 08:18 AM
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Donne, Way to Go... SPREAD THE WORD.  Thank You!

Sep 27, 2009 07:09 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Karen - I would be interested in knowing which Realtor organization you're referring to.  NAR?

Bill - thank you for the heads up.  I have since emailed your post to my mortgage friends as well as my broker, which I'm sure he already knew.  Anyway. there are more changes coming with the other announcement by FHA about mortgage brokers not having to be FHA approved to do FHA loans.

Now that the brokers don't have to be FHA approved, rest assured, our lending sources are not going to be adding more restrictions on who they deal with with and accept loans from.  Although Cobalt is FHA approved and we have good relationships with our lending sources, this will probably reduce the number of lending sources for many brokers.

Sep 28, 2009 03:56 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Donne - It's not confirmed, yet, so I'll have to keep that to myself for now.

Sep 28, 2009 04:11 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Karen - okey dokey but do keep us informed if any new developments arise.  Have a good day Karen.  :)

Sep 28, 2009 05:22 AM
Marie Ogle
Mortgage Processing Solutions - Spokane, WA
Contract Mortgage Processor

This will just further hurt our already bleeding economy.  This industry has already suffered substantial loss and this would just further the astronomically high number of job losses.  A truly sad day for our nation if this passes.

Sep 29, 2009 05:27 AM
Jay-Paul Lowry
Riverside, CA

Donna,

What about HUD raising net worth requirements to $1,000,000 from $250,000? Can you imagine how many smaller although responsible lenders will be put out of business.

 

JP Lowry--President--Preferred Financial Funding, Inc

Oct 02, 2009 08:42 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Marie - AMEN!  The biggest losers though be the consumer because they would have fewer choices of where to get a loan and less options for loan choices.

JP - We're already starting to see that and I strongly suspect it's going to get a whole lot worse before it gets better.

Oct 02, 2009 08:54 AM