Important Message To Consumers & Media From NAMB (Part Two)

[danthemortgageman]

The Fed rule was supposed to address the issue of LO's who raise the cost of a mortgage in order to increase their comp, But it has ended up depriving LO's of the ability to discount the rate to the consumer & absorb the cost of that discount by reducing their compensation. That’s a competitive choice & what a healthy market is all about. Independent mortgage lenders want to be able to vigorously compete on cost, but in a bizarre twist of poorly conceived regulation, the FED rule prevents that !

[davidprulhiere]

nice job on the lighting. last video was really dark. this one looked great.

This is not just about mortgage brokers, they are trampling our rights as Americans to earn money, and have a small business. What's next? Telling supermarkets they can only adjust prices once a quarter, or dictating that more than 10% profit is illegal.

Consumers won't "buy" if it is too expensive, and that will drive the price down when there is competition. Let the market sort itself out.

[pierce1310]

There are no "unintended" consequences. The big banks and their lackeys on the fed- and in congress- know exactly what they're doing. If it isn't this edict by the Fed it will be Dodd Frank. The idea here is to shut down competetion and then hire the brokers for pennies on the dollar.

The banks don't have the public's interest at heart. Their only concern is the acquisition, expansion, and retention of wealth and power. Just look at the 60 Minutes segmnent on mortgage assignment fraud...

[danthemortgageman]

@angelemixson : YES. I think the intent was good but the END RESULT will cause JOB LOSS, & HARM the consumer with higher FIXED COLLUSION like Pricing where all the Lenders will build 2.5-3 points (250/300bps) into their PADDED FIXED pricing leaving BOTH the originator & the consumer NO ABILITY to discount. As a result of these rules, Consumers & Originators are HARMED by this ONE SIZE FITS ALL pricing. It is ANTI-COMPETITIVE & will HURT the fragile housing market resulting in fewer loan sources.

[angelemixson]

if we point out what the UNINTENDED CONSEQUENCES will be, i dont see how any judge wouldnt put a long term halt on this rule until it's all ironed out. 

[cmsi70506]

Mike,

Just wanted to take the time to thank you for doing the two videos and keeping with the fight. Really speaks volumes when you take the time out of your weekend to keep this going. Good job on the videos also. Don't let the critcs bother you.

[cleith1]

presence not presents

[danthemortgageman]

@Regulatorsrunwild : Well then who regulates or oversees the Federal Reserve then ? What if the Federal Reserve, which is not so Federal anyways since it is owned by a consortium of private BANKS both national & international. Here's the thing Judge Howell. The DUAL DISCLOSURE rules between Banks and Brokers is HARMS the Public. Banks being EXEMPT from disclosing Back End loan profits or Yield Spread Premium but FORCING BROKERS to have to DISCLOSE is both DECEPTIVE, UNFAIR & EVADES DISCLOSURE !

[Regulatorsrunwild]

“Rather, the language of the statute is clear that the Board has power to regulate all practices “in connection” with mortgage loans that the Board finds to be unfair, deceptive, or designed to evade disclosure requirements.” Pg 21-22 of Judge Howell's Opinion on 3/30/2011.

This gives the Federal Reserve Board the authority to regulate all industries not just residential real estate.

[danthemortgageman]

HOEPA/Section 32 & others already protects consumers with capping loan fees. The section that OUTLAWS split compensation whose intent was protecting the consumer actually harms them by giving them less options & flexibility to pay for the loan fees in the transaction. Purchase Money Buyers will not be allowed to offset borrower paid origination/ 3rd party fees with YSP since all loan origination costs must be charged either 100% up front OR 100% in the form of a higher rate / Yield Spread Credit

[danthemortgageman]

Agreed! This legislation had good intent to protect consumers but in the end it is over reaching & over regulating of free market competition. The End result will be anti-competitive & further along BIG BANKS(both depository & non depository) monopoly of Mortgage Loans. Consumers will suffer harm with less access to mortgage credit sources, & Lender predetermined ONE SIZE FITS ALL fixed loan pricing models that can't be discounted will result in higher fees/pricing overall for mid to large loans