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With The Best Of Intentions

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

It should not come as any surprise that the Lending Industry has been going though major changes over the last three plus years, and more major changes earlier this year with the Consumer Financial Protection Bureau (CFPB) Qualifying Mortgage (QM) Rules going into effect this month.  All these changes have caused me to reflect back, and ask myself if I had to state in a few words what best describes this time period what would it be?  My first thoughts were knee jerk and cynical, but once I gave it serious thought, the words I feel best describes what has been taking place are "With The Best Of Intentions".

Call me foolish and gullible, and I expect my good friend Lenn Harley to do just that, but I do not think the rules and guideline changes have been created to intentionally hurt anyone.  I do think those who have implemented the changes truly believed they were helping.  The problem is, even though they were trying to act "With The Best Of Intentions", they were making decisions which have resulted in the opposite of their intent.

There are many reason for why all these regulators, and more recently the CFPB, have failed to accomplish the what they intended to do.

  • They made rules & Guidelines without having hands on knowledge of the industry
  • They made rules & Guidelines without completely thinking through the consequences of their actions
  • They made rules & Guidelines based on what had happened and not on what is happening.

Anyone of the three reasons above creates a breathing ground for bad decisions.  Put all three together and we have a receipt for not only hurting those intended to be helped, but also hurting many more who were not even in the original equation.

Years from now when the total impact of of the decisions being made today are history.  A Historian will writes a book titled "With The Best Of Intentions", and will document and show how "With The Best Of Intentions", these Rules & Guidelines ended up doing far more harm to those who they meant to protect, then they helped.



 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.



Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I agree with you, especially on the point about lack of knowledge and hands-on experience.  I sometimes wonder when these people had an actual long conversation with those of us in the trenches lending on an everyday basis.  Keeping us in the loop and advising would correct some of the problems.  Good intentions alone can't accomplish what needed and still needs to be done ...


Jan 30, 2014 12:35 AM
Geoff ONeill
John L. Scott Medford - Medford, OR
This is what happens when government attempts to fix an issue without looking at the root cause of it.
Jan 30, 2014 12:40 AM
Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

It's kind of like making dinner for your wife and she winds up having to do herself because you screwed it up so bad.  Sorry honey "With All Good Intentions".  It's a good life.

Jan 30, 2014 01:07 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

That is standard government procedure. Make rules and regulations without any understanding of how it will impact the industry or market.

Another version of "We are smarter than you and know better than you, don't question us!" Then: "Oops, who could have known that these problems would come up".....Anyone who actually works in the business!

Jan 30, 2014 01:11 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi George, I don't think "good intentions" had anything to do with it. I agree with Lenn Harley's comment that a nation of tenants was the goal.

Bill Roberts

Jan 30, 2014 01:55 AM
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

I think it was just a knee jerk reaction to the housing meltdown.  And we are, and I use the term loosely, "lead" by elected officials whose only adgenda is........wait for it....getting re-elected.  No one in Washington feels any responsibility to be working for the greater good.  Our local real estate attorney/guru also teaches law on the side and he is spending a whole semester doing nothing but having the students decipher the CFPB. Sounds like death by a thousand paper cuts to me!

Jan 30, 2014 02:12 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

And what you write about happens when actions are taken in any situation without first hand knowlege and research of just how to best handle things.  It (and I hate to use this word), always ends up in disaster because it's a reacation.  Then we end up trying to fix the issues that the "solution" caused as well as fix the original boo boo.  

Jan 30, 2014 04:58 AM
Jack O'Neal
HomeSmart Elite Group - Gilbert, AZ
George, I think it's kind of funny when people mess something up and all they can say is that they had the "best of intentions". Sometimes it works out, sometimes it doesn't.
Jan 30, 2014 05:49 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

Dear Naive: There are no good intentions. They are working to bring us into a new economy that will control us and the way we live. Hard to believe, just stay tuned.

Jan 30, 2014 06:07 AM
Wayne L. Brown
Franklin Advantage Inc. - Alpine, CA


Interesting post.  As a point of information, today in mortgage news daily, there was an article that had commentary inside on the CFPB and a desire from the House Financial Services Committee that was asking for comments on this situation regarding the CFPB.

You could probably write a follow-up Blog on this.  To go to the House Financial Services site and comment, please go to the link below:

Comment page on CFPB with House Committee

Let's hope they get many comments........Here's Your Chance


Jan 30, 2014 06:18 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

When Congress passes a perfect bill everyone agrees on I will be the most worried. I can't think of much of anything that comes out of the box that works to perfection in the field and this is no different. As to the paranoid who believe that this is some ancient cabal coming together to destroy us please quit watching that Mel Gibson movie.

Jan 30, 2014 07:07 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

George, I think you chose very kind and appropriate words as I truly believe the intentions are good, albeit often misguided. The latter happens for many reasons, some of which you mentioned e.g. not thinking through all the possible, often negative, consequences. Also, as part of the political process, sometimes original concepts get watered down to something that doesn't even resemble the initial intent. 

Jan 30, 2014 07:19 AM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Great post George - I guess all we can do is wait and see, eh?    And cross some fingers and toes along the way, since it will affect us all.

Jan 30, 2014 07:58 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, unfortunatley, a lot of times the best of intentions have unintended and undesirable side effects and consequences.

Jan 30, 2014 10:09 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, it does seem to be standard operating procedure that those having power to affect change does so without consulting those closest to the issues.

Jan 30, 2014 10:11 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

George, Well stated, "They made rules & Guidelines without having hands on knowledge of the industry" so why the heck are they making rules when they have not a clue. We can rack those best intentions up with the heath care plan. Far more are being hurt than helped, IMHO.

Jan 30, 2014 10:53 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George - this is brilliant.  I think you have summarized the problem so accurately

  • They made rules & Guidelines without having hands on knowledge of the industry
  • They made rules & Guidelines without completely thinking through the consequences of their actions
  • They made rules & Guidelines based on what had happened and not on what is happening.


Jan 30, 2014 11:34 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning George. Well done! The sad part about any reactionary rules and regulations, the horse has already left the barn.

Some of these rules and regulations are actually pretty funny. "The Ability to Repay", like what lender in the last 5-6 years will do a mortgage if the borrowers don't have the ability to repay the loan?

Jan 30, 2014 06:49 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello George,

I will have to go with the more cynical take on this as I believe the "best intentions" are just part of the Washington machine's overall scheme...


Jan 31, 2014 01:24 AM
Debbie Walsh
SHAHAR Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

I agree with Lisa V.  I think a lot of these rules and guidelines were definitely not well thought out with every scenario and taxpayer in mind.

Feb 01, 2014 11:48 PM