ALL BROKERS ARE GONE!
According to Jamie Dimon of J P Morgan Chase ALL BROKERS ARE GONE in testimony to Ben Bernanke. In his list of things that have already been done to remedy the housing crisis citing that brokers are all gone was high on the list. Well, along with thrifts. You can watch this clip at www.TBWSDailyShow.com
I love the look on Bernanke's face. Though there has been much discussion regarding the cause of the housing collapse, and granted the mortgage brokers have taken it on the chin, I think a lot of folks have come around to understand the real problem was the product, not the loan originator.
According to this video J P Morgan Chase bought out two large providers of sub prime loans WAMU and Bear Stearns. If Jamie Dimon firmly believes mortgage brokers were a problem selling the sub prime loans, then how does he excuse his company for their deep involvement in the sub prime loan business? Between 2005 and 2007 these firms along with J P Morgan Chase originated $295 BILLION sub prime loans.
Overall mortgage loan originations are way down, mortgage brokers increasingly are getting a smaller share of the market in large part I believe because they are being blamed for the mess. Mortgage brokers bring a very important element of competition to the market, their demise would not be good for the consumer.
By the way ALL THE BROKERS ARE NOT GONE! I'm still here and I'm not alone. We as a group do not have a large lobbying arm which is a problem in Washington, sadly. But there are plenty who have toughed it out and we are indeed the cream of the crop!
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