Federal Agencies Propose Rule to Implement S.A.F.E. Act Mortgage Loan Originator Registration Requirements

mortgagemess at 06:39 2009-06-02 said:

Those in the mortgage business, who became speculative investors themselves, and are now losing it all should not be able to maintain their mortgage license. If they cannot show financial responsibilty for themselves they should not be advising others. These are the ones who make the biz bad for others.

Since the mortgage business falls under the regulation of Banking and Finance this should be enforced. If I walk into a bank seeking employment with bad credit, chances are the bank will not hire me. Makes sense. Permalink

tvsterling at 07:25 2009-06-02 said:

I don't seem to see any regulation for independent mortgage brokers; at least not in the article. Are they covered by other regulations or what? Permalink

mmiskiel at 07:35 2009-06-02 said:

Be careful painting all LO’s with a broad brush. I know an ex-loan officer who committed major fraud by writing multiple loans on supposed multiple primary residences that closed all at the same time as he was speculating he could flip them fast and scoop up the cash. He wrote all the loans in his wife’s name, now his ex-wife and she had them foreclosed on. Today he works in a bank selling securities.

I know of other loan officers who operated with integrity and did things like turning away customers for dangerous loans such as option pay arms while others were making big bucks selling those products s who now because of no fault of their own have seen their income cut in half or more and are facing bankruptcy etc.

A persons credit score is not a reliable measurement of ones ethics or the ability to do the right thing. Permalink

mortgagemess at 20:11 2009-06-02 said:

of course there are always those that learn to manipulate the system, hence, why we are where we are today in the mortgage industry!

You cant get rid of all the bad apples, but you should be able to shake the tree enough to reduce the load... Permalink