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]
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•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.
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