Here comes the windfall

Real Estate Broker/Owner with Short sale pathways

Over the past couple of years there has been a lot of speculation as to who was responsible for the mortgage meltdown. Was it the appraisers for over estimating the value on properties in order to make a mortgage broker happy? How about the Realtors and mortgage brokers who pushed higher price homes upon people who they new were approved but could not afford the homes that they were buying. Maybe the underwriters who turned a blind eye on the files that were incomplete and managers pushed the loans through anyway.

The mortgage lending industry has been under investigation for quite some time and finally arrests were made. 2 hedge fund managers from Bear Stearns were arrested and charged with securities fraud for not supplying correct information as to the performance of their subprime portfolios. Another four hundred plus mortgage industry and housing professionals were also arrested on various charges of mortgage fraud.

This is only the beginning of the mayhem to come. Thousands of lenders, Realtors and appraisers are currently being investigated in order to hold someone accountable. There is a lot of blame to go around and every industry is passing the buck to the next. Things are going to heat up fast so get ready for a wild ride.

Comments (6)

Charlene Hammontree
616 Realty LLC - Rockford, MI
Meeting the needs of Buyers and Sellers in MICH

You will hit a vain with this post! I can vouch working for an appraiser, being a mortgage processor, and a sub prime underwriter and now a Realtor, there is enough blame to go around. I didn't want to be a "Realtor" again becuase I didn't want to be one of those that had no morals. The real estate profession certainly  had  a good ride in a great market and there are always those who want to see how to push the ride into something more in any profession.

What hurts the most is not whom did what, but who is really affected by this. The home owner. The home owner looks to us for education and direction and we don't have a crystal ball, but I have helped many a home owner deal with this mess and you are right! It will get worse and leave the better agents, appraisers, lenders, loan officers still standing when it is over.



Jun 22, 2008 11:40 AM
Rob Jacobs
Short sale pathways - Rockwood, MI
Short Sale Specialist

Charlene- you are absolutely right. The homeowners are the ones taking a beating and it is especially difficult on the ones who took on a bad loan without the proper guidance. Maybe there neeeds to be a more stringent policy on handing out licenses to anybody that can breath and pass the simple state exam.

Jun 23, 2008 12:35 PM
Mike Sebeniecher

Great post Charlene! There is plenty of blame to go around and I think a lot more people will suffer the consequences for their actions. The key componinent in this whole thing is "greed". Everybody was looking to make a quick buck at the expense of the uneducated homeowners. I am new to real estate investing, but I really do like working with and helping people who have been taken advatange of by greedy real estate professionals. Some of the stories I have heard are very upsetting to me. Check out my Blog posts of the stories that I have been told by homeowners.



Mike S.

Jun 30, 2008 12:38 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Great information, lots of blame to point in another direction.  Lots of heartache and upset stomachs. 

Jul 05, 2008 04:22 PM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

The blame can be spreaded around and have some left over!  So many have been affected by this crisis that it is too much to try to analyze.  And it is not getting better soon enough.

Jul 06, 2008 05:21 AM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

The blame can fall upon many shoulders.  As a Broker, I have seen many an agent push real hard to get the sale.  I have seen appraisers ask how much do we need this home to appraise at.  I have seen mort brokers, say, don't worry, we can make that go away. 

BUT, I have also seen Real estate agents say,  That is to high for what you want to spend for a month,  I have seen an apprasier say, I don't care what you need the appraisel to come in at, you will get what I think the value should be.  I have seen mort brokers, say I know it's not a big bill, but, it still needs to be addressed. 

So, blame can go all over, just depending on what that agent or other person is willing to do to get the sale.

I have personally seen more problems on the mort broker side, (not independent banks!)  I have seen brokers do things that a bank would decline.  I have also asked everyone that I have come across that had an "ARM" product, and almost all said a, because, their local bank would not give them that type of loan...HMMM I wonder why!!!!!! 

Jul 07, 2008 12:42 PM