Today, as many other loan originators I have received the NAMB's letter telling me perhaps my livelihood as I knew is about to be over, since congressmen feel the need to socialize the lending industry. Let's face it, taking away yield spread premium will basically eliminate brokers, but that is not all where it stops, and that is what they do not realize, or perhaps they do. Ignorance is a bliss...that is what I have been saying all day today.
I have been thinking, who besides my peers will be affected by this? Well, aside lending companies, that are not actually banks, realtors, appraisers, title companies, escrow companies, and I could go on and on. But let's not forget the person that will be affected by this the most! YOU, THE CONSUMER! WHY, you may ask? Well, here is why, at least in my opinion, and since it is my blog, I can voice my opinion. It's up to you, whether you choose to take this in, or not.
I have been in this industry for 12 years. And during those years, I have always worked for brokers, never a bank. One thing I knew is that there was always a competition. The reason for the competition is that we could negotiate according to how much we would make based on the yield spread premium we would earn, and what type of loan we could get for our clients. Let's face it, that is what it came down to. Now, that it might be taken away from us, there will be no competition. This will cause rates to be higher, is that good for the consumer? I don't think so. My good friend Jackie said, "there will be two homeowner classes, the very poor that are on welfare and can obtain an FHA loan or the very rich that only the banks will offer". Again, is that good for the consumer? Think about that!
I come from Hungary, grew up in communism. There was NO competition there. How interesting, as this is what this reminds me of!!! Sounds, oh so familiar to me.
Is that where we are heading?
To be honest, ever since this mortgage meltdown has been happening, the media and lenders, and the consumers are all pointing at the brokers to blame. What I find interesting is this.....brokers don't come up with loan programs, lenders do. If it wasn't available, how would we have offered it to people? How about that thought? And if I personally didn't offer the program to my client, do you believe they would not have found another way to get that program? Please!!! Let's all be fair about this. I do agree, that there are bad apples in out industry and they have to be shaken. Thankfully a lot of people have already left this industry and left it for us, who have been in this for the long haul, and not just for the "boom" to make quick money. I believe and hope that I have truly helped people to be in better place then they were before they came to me. Being a mortgage broker IS my life, what I know, I don't look at it as get rich quick scheme. I consider myself a professional and won't let some congressman take that away from me! And since we are talking about bad apples, let's just say, we would all agree, there are bad lawyers and even bad doctors, do we eliminate all of them???? C'mon!!!
If this bill passes, I truly believe, it is just the beginning and a gateway for other professions potentionaly loose their "yield spread premiums", when some politician thinks one bad thought. Again, are we moving toward a NO competition world? I didn't think the US was that way.
November 6th is the day when this will be voted on. I sent my pleading letters to my congressmen; please do yours, if you want your financial freedom, as that is what this comes down to. Don't let politician decide what will your interest rate be, or if you can even get a loan!
Thank you for reading...