Important Message To Consumers & Lawmakers From NAMB (Part One)

[scalise4]

You are 100% right when you say that Wall Street & Big Banks created those programs. The LOs took the heat, however anyone that understands the mortgage industry should know that if a client qualifies for those programs & we refuse to offer that product we are in violation of the Equal Credit Opportunity Act. Blaming the LO makes as much sense as if to blame Walmart cashiers if they were selling toys with lead based paint in them instead of going after the manufacturer that built them.

[scalise4]

Comment 1

A few comments as this just seems so simple of an argument. If this is BAD for the Consumer and raises costs and interest rates for the consumer and it creates less income for the individual loan officer... that who is profiting??? Answer: THE BIG BANKS, it is that simple. Any LAW in America that kills small businesses and eliminates competition is not a law that Americans should allow. We do NOT need a monopoly created in this industry and that is ALL that it does. Continued..

[genemundt]

breifs ... oops?

[danthemortgageman]

I know I cant speak for all originators, but personally I like having the option of negotiating a reasonable compensation for my originator services based on loan size & difficulty. With the new laws, small BANKS & BROKERS will be forced to set a predetermined total pricing model. Also, it must be ALL either Lender paid via Lender credit aka YSP OR it must be ALL borrower paid fees. WHY ?!? I personally feel 200bps is fair on a smaller loan but I want the RIGHT to go to 75bps or 100bps if needed

[TheTLeeD]

Keep up the fight. I was at a broker shop and had to leave to go work for one of the top three banks and I will tell you, it is the worst experience for me professionally, on so many levels, let alone what degraded service level is offered to the consumer. I went thru all the NMLS, SAFE Act process and do feel that much of the skum bags have left the business. Now I find myself offering an inferior service level to my client and an inflexibility level I never could have imagined.

[danthemortgageman]

@milesjaviernomar : Consumers continue to be harmed by the UNFAIR and UNLEVEL playing field where BIG BANKS do not have to disclose Service Release Premium OR Yield Spread Premium. The BIG BANKS will continue to make thousands of dollars on the back side & the consumer will have no idea. Why should brokers have to disclose the Yield Spread Premium & NOT the BANKS? This HARMS consumers & prevents them from knowing the TRUE COSTS or PROFIT or TOTAL MARGIN on the loan they get from their depository

[danthemortgageman]

@milesjaviernomar: CONT - Futhermore, the originator comp rules will cause many brokers to be out of business which will result in fewer loan choices & sources for the consumer. Originators will NOT be allowed to credit back to the borrower some of their compensation, whether lender paid or borrower paid without running afoul of the new rules EVEN if unexpected situations or change of circumstances arrive. Finally, Consumers LOSE out since they won't be able to negotiate the margin with their LO

[danthemortgageman]

@milesjaviernomar : See my comments below for some talking points... Consumers will have less choice. Originators will be forced to offer FIXED compensation models at preset predetermined margins. The originators will NOT be able to deviate or discount these preset margins. SO if a BROKER or small BANKER sets in house pricing at 265 basis points lender paid comp or even 2.65% price for EVERY LOAN & BORROWER then those with larger loans will NOT be able to barter or discount below that margin :/

[milesjaviernomar]

I was hoping that this video was going to have a laundry list of useful taking points, but alas, it took until the last 30 seconds to even get to one point about why the consumer will be worse off if this regulation is enacted. Come on, we want to help - give us something to work with!

[danthemortgageman]

Brokers are NEEDED. Now is not the time to HARM Consumer access to mortgage credit. BIG BANKS don't have to disclose their back end yield spread premium/SRP profit! AND, they won't negotiate. Not even for a LARGER or EASY loan. If this legislation does not get STOPPED for the economic HARM it causes, neither will the small originator or broker be able to negotiate, restructure, or reduce their fees on a case by case loan basis based on loan size, or difficulty. BANKS WIN & CONSUMERS LOSE imo...

[essentialminute]

@danthemortgageman

I love your comments and so true

[danthemortgageman]

Loans are not one size fits all nor are closing cost scenarios. Obtaining the best execution mortgage & best personalized RATE & FEE structure does not just spit out of a vending machine. BIG BANKS don't negotiate their fees & currently they do not LEGALLY have to even disclose their YIELD SPREAD profit at all! Yet in a no points or no fees scenario, BROKERS have to not only disclose the CREDIT from accepting a higher yield rate, they ALSO have to show it as an ORIGINATION FEE to collect it O.o

[danthemortgageman]

Lost Jobs, Less choice, Higher loan costs for larger loans, Less access to credit for less than A+ borrowers & those who only need a small loan. The SAFE act & NMLS licensing, FBI background checks & fingerprinting have got rid of the BAD actors. Only the Survivors & Veterens remain. R.E. Agents customarily get 3% per side of a Transaction, BUT some negotiate & discount down to 2.5%, 2%, 1.5%, & even 1% depending on FREE MARKET competition NOW Originators will not be able to do so with their fee

[danthemortgageman]

THANKS for all the hard work and FIGHTING for what is right. You are dead on that consumers will be hurt ! With the new LOCKED IN pre-determined pricing model & limits on how originators get paid i.e. how we can structure that pay whether via points on the loan or with no points no cost and a rate that pays a CREDIT to cover the origination fees AKA Yield Spread Premium. These changes over regulate, over reach and will cause even more serious harm to the Nations Housing CRISIS & Economic Malaise

[essentialminute]

@shagus, yes we will ROCK ON and fight just like the ELITE should. Thank you for the great comments you just motivated me to fight even harder!!

Mike Anderson, GA Chair NAMB

[shagus1]

The Elite Forces of the Mortgage Industry!!..I love it. Have been an owner and originator for 23 years. Did maybe 5 sub-prime loans my entire career and maybe 3 negam loans. 98% of all loans have been A+ type loans. Lifetime friends with many of my clients who keep coming back again and again. The scumbags have left the business.....what right does the Fed Reserve have to control what I am paid...friggin' intellectual socialist eggheads...all the things you say resonate with me..rock-on!!

[ssmither5150]

Thanks Mike... Good luck to you all in the fight.

[randylue101]

Great job Mike. Thanks to you and everyone at NAMB for working on this issue.