I hate to be the type to rant and rage but I feel I have to get something off of my chest here,
Recently I have had to explain to an agent why it is that the closing will be delayed, and tried to educate that agent regarding all the new RESPA changes that have taken effect as of January 1st 2010. Now I have had several deals effected by the changes in RESPA, and for the most part I found everyone I am doing business with to be very understanding and cooperative. There is one in particular though who is the furthest from being agreeable to anything. After spending at least 30 minutes trying to explain what it is that lenders are now up against, the only response this individual seemed to be able to elicit was a 15 minute campaign of screaming and yelling. In between the screaming and yelling they did manage to have a few coherent words that sounded something like a 2ND grader telling another student that they are big stupid head. I mean really, who do you think you are helping by behaving this way? I can not help that the new RESPA laws was issued with virtually zero guidance and that all the brokers, lenders, and banks themselves have spent the last week working with legal teams trying to decipher these new regulations. I can not control that there are new procedures in place now that prohibit lenders from ordering any 3rd party services until other disclosures and time-lines have been met.
Personally I think the new RESPA laws are a joke. I also think it is a joke to have this come out with out enough guidance and education for the entire industry so that we would have all been better prepared for these changes. The biggest thing that is a joke to me is that we are no longer allowed to ask for any documents from a borrower until after a GFE has been disclosed, and accepted by the borrower. I mean really how can anyone prepare an accurate GFE based on information that is only given verbally? In a perfect world all borrowers would be able to tell us exactly to the penny how much they really earn, but in the real world very few people can make the calculation accurately on there own. For ever 9 out 10 applications, when we get the income documents from the borrower the income ends up being slightly different than what we anticipated. For some this is not big deal, but for other a change in even $100.00 per month, can result in a different lender or a maybe even a denial. This is because Debt Ration tolerances are not what they used to be, and the difference between a Debt Ratio of 49.99% and 50.01% can now mean a sure denial of credit. Not mention that the change from one lender to another can also mean a change in fees. Under the new RESPA laws, once a GFE is disclosed the fees associated with Origination which include underwriting can never be changed. So if bank A has and underwriting fee of only $295.00 and bank B charges $795.00 good luck getting the second lender to accept the GFE. I do not see them being so nice that they will accept loans for less than what their charges are. Under these circumstances the only way to make it right is for the Broker/Lender to eat the difference, and that will only go so far. For those of us still in business, we are already faced with the challenges of limitations on fees, new disclosure requirements (I am all for new disclosures, but trust if it took a 20 year veteran all day to understand the new GFE, your borrowers will never get it) but how much more burden can you put on a broker? Eventually your cost of doing business will exceed the profit you can even earn. I guess then everyone just becomes unemployed and all the staff can be yet another victim of the economy and the governments inference with business. The good news is unemployment keeps getting extended so the rest of you will enjoy paying for it.
Anyway, back to my original point. I am really angry at the fact that some agents are just plain old horse's asses! I mean really, I calling to explain to you the changes. You can tell from not only my words, but also the tone in my voice that it has been a frustrating day trying to navigate these changes. I have told you what has been done to address the changes implemented, how it is being handled and what will be done next. I am sorry that the appraisal could not be ordered the day you wanted it, but we are adhering to the new laws with specific time lines for things to be done. We have been hit with a zero tolerance policy from HUD and the Fed. I do not care how much of a jack ass you want to be, I do not care how much you scream and yell, I do not care how much you want to bash me to other agents in your office ( I know you will, because I know your type). I still will not break the law, not for your seller, and definitely never for you! You are the antithesis of team work, you give everyone in our business fighting to keep productive and fighting for our clients a bad name. I will not name you, and I will not continue to say anything more. I just simply hate the fact that some agents have to behave in an unreasonable manner. By the way, your refusing to educate your sellers about these new changes will not help them. Weather you are dealing with me or anyone else, the rules will remain the same. Expect time lines to get a bit longer, and expect the next 90 days to have delays as the entire industry adjusts to these changes.
I will be writing another post later with detailed explanations of the new RESPA rules and how it will effect not only us as agents but more importantly our buyers. Stay tuned for updates on the new rules. I will do by best to keep everyone informed.
Tropic Shores Realty