Sorry folks, but there is enough blame to go around the room...twice!!

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Services for Real Estate Pros with "A Quick Note" ...in Tennessee! Expires May 16, 2023

I've read alot lately about people pointing fingers at one another and deflecting the blame for the mortgage melt-down away from their own personal vocation.  The fact is that we are all to blame and that it will take all of us to get out of it too.

So who is to blame?  Here's your answer...

Lenders: For failing to qualify their borrowers in a sensible way...BEFORE any crisis occured.

Mortgage Brokers: For being less-than-honest with their borrowers about the adjustable products they were pushing homeowners into.  For closing deals they knew would come back to bite their clients and not caring...

Brokers/Realtors: For pushing people to "reach" for properties they had no business reaching for... Some of whom made Mortgage Brokers and Loan Officers rich...

Appraisers: Who wanted to keep the gravy train rolling and inflated values

Notaries: Who were un-professional and/or unlawful in getting deals signed [can you say fraud?] for their own profit motive(s).

John Q. Public: For not being bright enough to keep from getting in way over his own head!!  For not being smart enough to exercise that 3-day right to cancel...

The Federal Government: For not insisting that significant banking/lending regulations were both in place and being enforced!

Do realtors deserve the grief they are getting?  The answer is yes...and NO.  Yes, they share the blame.  No, they are not even close to being the worst offender.  Remember, "He who holds the purse strings rules the world".

"A Quick Note"

www.aquicknote.net

Comments (8)

Elizabeth Quinn
sierra valley notary - Granite Bay, CA

Very good points Shannon. It is my opinion that no mortgage banking firm, lending institution, etc. should be allowed to utilize their own inhouse notaries to close their loans. It is a conflict of interest that needs to be recognized and corrected in CA.

Furthermore, real estate agents should ethically tell their clients that it is their right to choose their own notary or contractor. Full disclosure of their rights is in order.

Is is not the loan signers responsibility to explain the financial ramifications of a loan.

My humble opinion.

 

Jul 17, 2008 04:15 PM
Elizabeth Quinn
sierra valley notary - Granite Bay, CA

Very good points Shannon. It is my opinion that no mortgage banking firm, lending institution, etc. should be allowed to utilize their own inhouse notaries to close their loans. It is a conflict of interest that needs to be recognized and corrected in CA.

Furthermore, real estate agents should ethically tell their clients that it is their right to choose their own notary or contractor. Full disclosure of their rights is in order.

Is is not the loan signers responsibility to explain the financial ramifications of a loan.

My humble opinion.

 

Jul 17, 2008 04:15 PM
Elizabeth Quinn
sierra valley notary - Granite Bay, CA

Very good points Shannon. It is my opinion that no mortgage banking firm, lending institution, etc. should be allowed to utilize their own inhouse notaries to close their loans. It is a conflict of interest that needs to be recognized and corrected in CA.

Furthermore, real estate agents should ethically tell their clients that it is their right to choose their own notary or contractor. Full disclosure of their rights is in order.

Is is not the loan signers responsibility to explain the financial ramifications of a loan.

My humble opinion.

 

Jul 17, 2008 04:16 PM
Carey Pott
January Financial - Foothill Ranch, CA

Well put Shannon. I have been telling everyone that asks me the same thing - as a mortgage broker I will shoulder the responsiblity that my colleagues and I should bear, which is not insignificant as there were many of us who pushed loans and clients that had no business getting the mortgage they got. However, there's more than enough blame to go around and anyone in the industry who thinks they bear no responsibility as an industry is fooling themselves... Yes, even notaries.

Jul 18, 2008 05:20 AM
Michelle Chamberlain
Above All Financial Services -Pennsylvania Mortgage Broker - Secane, PA
Suburban Philadelphia Mortgage Broker

Shannon,

 

I agree with you 100%. So disappointed that most everyone sees it this way besides some Realtors.  There is no way we can ever move forward unless people are willing to accept responsibility for their actions.

Jul 18, 2008 02:46 PM
Steve Dibert
MFI-Miami - Fort Lauderdale, FL

Since I started investigating mortgage and real estate fraud, and yes, we've been swamped, I have to agree everyone had their hand in the cookie jar!  If you would like to learn more check us out on the web at www.mfi-miami.com

Jul 22, 2008 05:40 PM
Laura Vestanen
Bellingham, WA
My book "Notary Marketing 2019" is on Amazon.com

Finally!  A voice of honesty in this industry.  Thank you, Shannon.

That's why I only take loan work from LOs I know to be 100% honest.  I only do Mortgage Accelerator Helocs and HUD-backed Reverse Mortgages.  Mostly I do non-loan work.

I missed a lot of work during the heydays because I refused to work with companies who lied or colluded with liars.  Many companies blacklisted me.  But I knew I couldn't face the mirror if I colluded.  I refused work involving  Ameriquest, Argent, HFC, BFC, and many other predatory lenders.  But I sleep at night and don't worry about being named in lawsuits.

Luckily, my area has few foreclosures.  I think it is due to the majority of people here banking at credit unions.  The CUs here don't lie to their customer/members.  And the CUs have very strong portfolios, unlike the big banks and lenders.  I would be scared to put my liquid savings anywhere but a CU or locally-owned bank these days.

Funds insured by FDIC are covered up to $100K.  But I am skeptical about how long the government would take to issue funds.  I assume it would several months.  That delay could put many seniors out in the street if they use their savings to supplement their social security checks just to make ends meet.

Jul 23, 2008 03:48 AM
Anonymous
Paris Romero

The phrase "He who holds the purse strings rules the world" came across my mind last night as an American occupant was yelling at me over his "right" to not be provide answers to the 2010 US Census.

As an enumerator (one who goes door-to-door trying to complete the Census), I am getting yelled at by 8 out of 10 respondents.  I "get it" - I understand that everyone is mad at the US and the only sense of control they have is to be abusive to me...a lowly clerk.  As I have at least 3 more weeks of work, I try to look forward to going out the next day.  Honestly, I have not had a night of sleep not haunted by nightmares since I took this job.  A healthy person only experiences 3 - 5 nightmares a year - you can see the toll of the stress this has on me.  I'm at the point now where I want to yell back "OK!  I'll tell 911 to NOT help you!"

The point of control for these people is not beating ME up!  Call Barney Frank!  Call every head of Countrywide!  Yell at FNMA!  Barney put pressure on FNMA, who shared the collusion with Countrywide (who gave loans to people without SSNs). 

So who is buying our crappy loans now?  That is who the next owner of the USA will be.  Meanwhile, quit yelling at me.  I can't protect you from yourself.  You're an adult now.

May 23, 2010 06:34 AM
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