So if home investors are working off of poor information, surely they can just turn to a knowledgeable advisor to guide them through structuring the largest investment in their lives. Well, not exactly. The reality is that mortgage professionals are required to have almost no education. That is correct, not even a GED or high school diploma is required to manage the largest investment in America. The shocking reality, is almost zero financial knowledge is required to manage mortgages.
The small amount of education that is required in some states, is completely focused on the following on:
1. How to process loans effectively
2. How to properly disclose the government documents (the GFE &TIL) that provide the information so poor you cannot make a educated investment decision about little things like cost or risk, heaven bid you could figure it if you had high probability of success
3. Preventing fraud. There is no education about financial planning, asset or liability management, or the structuring of real estate investments. In fact, in many states, the sole requirement to structure the largest investment in the American portfolio, is to not be a convicted felon. Few people outside of the mortgage industry realize how poorly trained the mortgage "professional" really is. Now if you combine the lack of knowledge of the mortgage professional with the financial literacy of most Americans, the result is disturbing. Ask yourself, "How many people do you know that understand any part of the financial system we live in?"
Read more about the Fundamental Flaw in the real estate finance system....
Comments(0)