This affects the paycheck of everyone in real estate & hurts buyers. Am I the only one who cares?

Joyce - You are probably right but I think it is a manipulating of the economy to enrich themselves by buying investments that do well in bad times.  Kind of like betting on the #2 horse because someone drugged the #1 horse to slow it down!

Robert - Same standard.  What a concept for those in WA.  Here is the sad part, most people think they are being treated better at a bank.  They don;t know that they pay more and in many cases work with a loan officer with minimal education in finance.  As a result the loan officer take the loan application, throws them into a 30 year fixed without regard to monitoring rates to seeif they are dropping, payment ability of future needs of the buyer.  Big banks are conveyer belts in my opinion.

Robert - So true

Craig -  As do I my friend!

Bob - Yes they have and they pointed the finger at mortgage brokers who sold the loans that the big banks created, offered and pushed brokers to sell.

Susan - I agree that there are unethical people however to single out mortgage brokers as the cause makes no sense.  Bank loan officers did exactly the same thing and were paid exactly the same way as brokers except that bank employees do not have to disclose to a consumer how much they make by raising their interest rate or selling them a less desirable product.  It is actually the banks fault for providing and pushiong these products.

Lisa - Thanks!  You can suggest just not re blog.

Lloyd -Thank you for stopping by and commenting.  However think about what you said...

However, the real problem is that taxpayers are on the hook for mortgage losses.  That's insane and needs to stop.  Get taxpayers off the hook and you mortgage dudes can do anything you want.

One could argue that Real estate agents, appraisers, escrow officers and big banks who did not exercise ethics all contributed equal share to the mortgage mess so I think it isn't just mortgage dudes that tax payers are paying for. Real estate agents without integrity just like the mortgage dudes without integrity must share in the blame.

Example: Agent - How much can my client afford? 

Loan officer -   300,000. 

Agent - What kind of loan?

Loan officer - 30 year fixed.

Agent - Could they afford more if they had an adjustable rate?

Loan officer -  If the client wanted that maybe 400,000 - 425,000 Maximum.

Few days later - Agent- we found a home they like at 450,000 and they want to make an offer.  They are okay with an ARM loan they just want to get the house.

Not only did I get these calls during the housing boom I often had agents showing properties above the amount the borrower could qualify for.  Naturally I turned these down.  Client got financing elsewhere and eventually foreclosed.

My opinion: everyone involved had skin in the game so tax dollars are paying for everyone.  We mortgage dudes aren't the only ones being hurt by these rules- agents are too for the reasons I stated in this post.

Christina - There always have been

Lloyd - I appreciate you stopping by again!  I think we can only agree to disagree.  I'm understanding you as being supportive of the new rules and how they have been applied.  I think they are causing more problems which lead to more costs for consumers, real estate agents and others.  I am not advocating that nothing should be done.  I am saying that the rules imposed aren't fixing the problem and targeting the wrong people.  Privatize GSE means we need a bank with the amount of liquid assets as the US Government. Although I wish we did so we could dismantle the GSE's, unfortunately we don't. Therefore dismantling the GSE's would stop the flow of money and bring the real estate industry to a standstill. I don;t like the gov't intervention but we have no choice at this point because most banks are near insolvency.

Russell - Agreed!  Thank you sir!  I will head over right now  : )