Is The Small Shop Loan Officer the Next Dinosaur?

Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

What happens to dinosaurs? Mike in Tucson, AZ mortgage lender

Are small-shop Loan Officers the next dinosaur?  Extinction is not a pretty thought. 

Loan Officer compensation is the subject of the day if you are employed by a Mortgage Broker.

The boys over at Think Big Work Small posted a video on the subject that you'll want to see, especially if you're a mortgage broker.

(I tried to figure out how to upload it here so you wouldn't have to click the link, but it's late, and I couldn't find today's video on You Tube.)

If you don't have time right now, bookmark this post and come back later.

REALTORS:  Listen to the video, and think about your own livelihood.  If this can happen to Loan Officers, it certainly can happen to you.

Think about it!



I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, and Nogales.

Comments (18)

Brian West
imortgage - Gilbert, AZ
Arizona Lender

I saw this today as well. I'm sure you saw yesterday's as well? Ties in nicely with the same message that if you aren't one of the big 4, you may be doomed. At the very least, the loan officers who are illegally being shaken down on their bread and butter by our government aren't the ones who will pay the bigger price, it will be the customer with competetition all but gone. It's sad..

Feb 15, 2011 03:56 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


Thanks for being the first to comment.  I did see yesterdays, and it started me thinking about the future of lending in the USA.  Under the guise of "making things better for the consumer," it's headed in the opposite direction.

Mike in Tucson

Feb 15, 2011 03:58 PM
Brian West
imortgage - Gilbert, AZ
Arizona Lender

I agree, as they mentioned, the govie has not done one single thing "right" throughout this mess and in the end it will hurt millions of families related to the real estate world..

Feb 15, 2011 04:43 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Mike, I see nothing wrong with making the loan officers take required classes and exams, like you have to do here in Arizona.  But, the bottom line about mortgage PROFESSIONALS - the real estate bust wasn't YOUR fault - it was 100% wall street and the crazy trading of junk funds that was allowed as well as the "intelligent" computer models developed by FNMA and FHLMC (freddie mac.) 

Where are the regulations on THEM?  Oh, that's right, it's easier to point the fingers at the "little" guy because "he" caused ALL this damage. 

Feb 15, 2011 05:02 PM
Brian West
imortgage - Gilbert, AZ
Arizona Lender

Juli, if you read this, you are my new best friend! haha. You are so right, not to say mortgage companies and so many other entities didn't have their hand in the cookie jar, but mortgage companies only did what wall street, Fannie Mae, Freddie Mac, VA, FHa etc allowed them to do.

Sorry Mike, just had to comment, hope you don't mind

Feb 15, 2011 05:05 PM
Bill Pohl
Tetra Homes, Inc. - Loveland, OH

The problem with everything "financial" right now is that no one who has actually been in the industry is writing the laws. Then people are surprised by the unintended consequences.

Feb 15, 2011 06:06 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


You're right on the money with your comment.


No worries!


Your comment outshines the post!


It's an illustration about the nonsense of the Nanny State.  The more regulation, the worse the problem becomes.  Thanks for coming back.

Mike in Tucson

Feb 15, 2011 09:41 PM
Cheryl Johnson
Highland Park, CA


I think the TBWS edition on Monday was even scarier... The QRM requirement for loan officers to maintain in reserve a certain dollar amount percentage of each loan made for the entire life of the loan..   ... How many small shops could manage to do that !!??!!

 P.S.  I agree that Bill's comment is spot on!


Feb 15, 2011 11:05 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

OOOOOH, I feel so special - I have a new best friend.  Sounds like we're ALL in agreement here. 

Feb 16, 2011 01:43 AM
Markita Woods NMLS#196099
American Financial Network - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Love the comments on the post, I could not agree more!

Feb 16, 2011 01:55 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


Thanks for stopping by!


It's like Facebook!


Thanks for the link!

Mike in Tucson

Feb 16, 2011 03:07 AM
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Leave it to you Mike to get the conversations going here!!  It's extremely scary to watch what is happening to our friends in the mortgage industry.  And you're dead on ~ if this can happen to mortgage lenders isn't it possible it could happen to REALTORS® as well?
Pamela in Raleigh

Feb 16, 2011 04:54 AM
Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Mike, I am not a lender and I am primarily doing referrals to and from Latin America -- but these these regulations are terrifying

I watched the video you mentioned and also the one about QRM.  If this keeps up, only the big four (banks) will remain in business and it will be a disaster for the consumer.

The next step will be the big four (banks) to take over listing and selling real estate.  I hit the suggest button and I would re-blog if I could, this is important.

Feb 16, 2011 07:52 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


I miss the reblog button!  ...and I wonder what I'll be doing for a living come April if this goes through.


I think it certainly could.  The world is upside down.

Mike in Tucson


Feb 16, 2011 10:37 AM
Douglas Trudeau
Tierra Antigua Realty - Tucson, AZ
MBA, Assoc. Broker, Selling Tucson Real Estate

Mike, very insightful. Just goes to show s/he who has the money controls the strings. We as consumers and taxpayers are constantly being ripped off by big banks and the politicians whose palms a greased and refuse to properly regulate financial institutions and unions. Money is the route of evil for far too many. Greed got us into this mess, and greed is continuing to bury all of us. THis is right in line with a video I saw about how the big money investors are fleecing us on foreclosures. I could go on and on about this. But, I won't. Thanks.

Feb 16, 2011 01:24 PM
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I believe change had to happen in the industry. However, I believe too much Government intervention will be an over kill. I have heard that they are trying to lower loan officers compensation. This is not right-We are not a socialistic country.

Feb 17, 2011 12:42 AM
Gary Miljour
American Financial Network, Inc. NMLS#207208 - Southern Pines, NC
Mortgage Originator NMLS Licensed in AZ and NC


As a colleague of yours, you know that I have been watching this closely as well and here is my 2 cents.  What happened to consumer choices and competition.?  All this new regulation will do is shrink competition and force more consumer with higher rates and fees.  Still, the jury is out on how this thing will be truly implemented.  I have been through so many changes in the last 5 years, but still find a way to survive.  We will have to adapt again. 

Can we say a government forced "Who Moved My Cheese"

Feb 17, 2011 05:19 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Mike - while change is needed, I hate to think of what the future for lenders AND realtors is going to look like....

Feb 17, 2011 06:41 AM