"With The Best Of Intentions"

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

The Lending Industry has gone and continues to go though major changes over the last eight plus years, and there is no sign of the changes ending.  If we look back at all the changes, each and everyone of them were made in an effort to improve the Lending Industry.  We can debate whether the changes have improved the Lending Industry better or worst, but I think most of us can agree the changes were made "With The Best Of Intentions".  

Call me foolish and gullible for believing 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 have make 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 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 Historians look back at all the changes and decisions made, one of them will probably write a book titled "With The Best Of Intentions".   The book will document and show how "With The Best Of Intentions" many of the rules,  guidelines, and changes ended up doing far more harm than good to those who they were meant to protect.

 

 

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 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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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Rainmaker
2,633,284
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I think your first point, "They made rules & Guidelines without having hands on knowledge of the industry," is a recipe for disaster.  

Jul 22, 2016 10:06 AM #1
Rainmaker
2,843,590
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

George,  People who do not understand the arenas in which they are making policy have not business making them.  The fallout is disastrous and harmful to many.  As for the intentions ... I remain un-convinced they are the best. 

Jul 22, 2016 11:05 AM #2
Rainmaker
2,324,515
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

George: Anytime rules are made by those without a practical hands on knowledge of the industry the results are typically less than optimal.

Jul 22, 2016 11:17 AM #3
Ambassador
2,574,961
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Another way to look at it is in the future historians will see the mess created and just write it off to the stupidity of the politicians that found their way to power

Jul 22, 2016 11:19 AM #4
Rainmaker
672,502
CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

When I read this you make me think of our forefathers.

Depends on everyone's intention from the start.

Lauren Selinsky 

Jul 22, 2016 12:29 PM #5
Rainmaker
1,675,429
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi George Souto ,  I agree with you as far as more changes being in the future.

Jul 22, 2016 01:05 PM #6
Rainmaker
3,262,174
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George what is the old saying  about best intentions paved the road to hell? or something like that...Endre

Jul 22, 2016 04:24 PM #7
Rainmaker
3,318,486
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Intentions without a foundation of knowledge...not a good route to go...as we have learned but repeated...

Jul 22, 2016 07:42 PM #8
Rainmaker
4,797,927
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

So true, George.  Having "the best of intentions" doesn't make it right.  They need some people who know what they're doing and how to do it.

Jul 22, 2016 09:47 PM #9
Rainmaker
3,741,811
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning George. I love the title and think you have made a really good case.

Jul 23, 2016 12:54 AM #10
Rainmaker
1,808,442
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, it still is so perplexing on why they can not get it straight by doing beta testing before they implement all the changes they do.

Jul 23, 2016 06:25 AM #11
Ambassador
2,801,617
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi George - Good points. When you stop and think about how it has all gone down, and for so long, it's probably remarkable that we have a functioning mortgage industry at all.

Jul 23, 2016 08:00 AM #12
Rainmaker
2,099,634
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

George Souto 

Sometimes the best intentions aren't enough, but as you illustrate it could be worse. They had to do something. We could all look back now and say, they should have, could have or would have.... but that doesn't change anything. What matters to me is that there are credible people like yourself who help guide us through the spaghetti of words and forms that seem so foreign and hard to understand. If anyone deserves a gold star on ActiveRain, and recognition from the industry for the best person to explain what these rules are, it's you George.

THANK YOU!

Jul 23, 2016 11:55 PM #13
Rainmaker
2,396,083
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Isn't it interesting how all of us read your post and all got something different out of it? My Mom said the same thing.  If all 5 of us kids were are the same place experiencing the same thing, we would all tell a different story about what went on. Great post George, and I do think, they thought, they knew what was best. It is not proving to help them, they are paying extra costs to cover the expenses of working the way the CFPB demanded.

Jul 24, 2016 02:14 AM #14
Rainer
65,928
Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

I would add that along with (allegedly) the best of intentions, there was an assumption that nearly everyone in an industry was operating with bad intentions when policy decisions were made. There were a lot of people who contributed to the financial/housing crisis (consumers, lenders, insurers, government, GSEs, etc.). But it seems lenders caught the most blame. 

Jul 25, 2016 04:54 AM #15
Rainmaker
3,873,403
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening George Souto ,

I love the title of your post! Very well presented post that rings true!!

Jul 25, 2016 11:24 AM #16
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