Mortgage Brokers Can't Get Any Respect from Regulators and Policy Makers

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Mortgage Brokers Can't Get Any Respect from Regulators and Policy Makers; Brokers contribute to housing crisis by pushing larger loans than needed & high risk loan products
Topic Started: 23 Jun 2012, 11:04 AM (576 Views)
Alec Smart	23 Jun 2012, 11:04 AM Post #1
Posts: 381 Group: Gold Member Member #1,579 Joined: 10/01/2012	Loan Brokers Can’t Get Any Respect http://www.nationalmortgagenews.com/nmn_features/loan-brokers-no-respect-1031065-1.html It appears that independent loan brokers are ever-so-slowly rebuilding their production market share, but don’t for a minute think that this embattled sector is getting any more respect among US regulators and politicians. Even though the US housing market is nearing (or reached) a bottom (thanks to absurdly low rates) brokers continue to face public criticism for their role in the mortgage crisis. The general perception among Washington regulators and policymakers is that brokers caused the housing crisis because they jammed a bunch of bad loan products down the throat of poor, unsuspecting borrowers. And let’s state the obvious: the general media has yet to do any type of story on how applicants deluded themselves by purchasing homes they knew they couldn’t really afford. Of course, anyone who’s worked in mortgage banking for than four years knows that the “Broker Is Evil” story line is both absurd and naive. But let’s state the obvious: brokers played a role in the crisis—for sure. They were on the front lines with the consumer, selling payment-option ARMs and *encouraging borrowers to take out larger loans than they needed. Two weeks ago Marc Savitt, president of the National Association of Independent Housing Professionals, blew his stack when CFPB deputy director Raj Date made a speech to a banking group, laying blame for the mortgage crisis (in part) on brokers. “If a borrower could qualify for a loan at, say, 6%, a broker might juice that rate up to 8%,” Date told an American Bankers Association conference in Florida. Now Peter F, Finance Broker will probably react to this story and I hope you wont be offended that this article criticises the lending industry? An interesting comparison to the Australian economy is that Australian Gov's are encouraging First Home Buyers (FHB) to take out up to $650,000 home loans, via FHB grant conditions. I am sure this does not apply to Peter F, but some Aussie Mortgage Brokers might be tempted to write as much business as possibly and suck in FHB's encouraging borrowers to take out larger loans than they need. Edited by Alec Smart*, 23 Jun 2012, 12:40 PM.

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Strindberg	23 Jun 2012, 11:20 AM Post #2
Posts: 3,890 Group: Diamond Member Member #23 Joined: 02/11/2010	Alec Smart 23 Jun 2012, 11:04 AM An interesting comparison to the Australian economy is that Fed Gov and State Gov are encouraging First Home Buyers (FHB) to take out up to $650,000 home loans. Via FHB grant conditions. Made up libellous bollocks.
	Housing costs to Income broadly unchanged since 1994 - re-ratified here The People of Australia have the highest median wealth in the World 2002-2012 10 year house price growth the SLOWEST since 1952-1962 1990-2010 20 year house price growth the SLOWEST since 1950-1970 CHRIS BECKER NOW NEUTERED "There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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schooner	23 Jun 2012, 12:05 PM Post #3
Posts: 250 Group: Gold Member Member #243 Joined: 15/01/2011	Alec Smart 23 Jun 2012, 11:04 AM Loan Brokers Can’t Get Any Respect The general perception among Washington regulators and policymakers is that brokers caused the housing crisis because they jammed a bunch of bad loan products down the throat of poor, unsuspecting borrowers. Reminds me of our debt peddler Pete!.....

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hoofarted	23 Jun 2012, 12:12 PM Post #4
Posts: 1,122 Group: Platinum Member Member #50 Joined: 07/11/2010	schooner 23 Jun 2012, 12:05 PM Reminds me of our debt peddler Pete!..... Spot on! Pete will be here to defend his position in 3......., 2........, 1........

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Alec Smart	23 Jun 2012, 12:33 PM Post #5
Posts: 381 Group: Gold Member Member #1,579 Joined: 10/01/2012	Strindberg 23 Jun 2012, 11:20 AM Made up libellous bollocks. Here Lindberg, RP Data property spruiking company stated in the RP Data Research webpage the info below.. http://blog.rpdata.com/2012/06/is-the-housing-market-set-to-make-a-comeback/ Specifically the incentives which start on October 1 are: •$15,000 first home owners grant for new homes priced up to $650,000. This reduces to $10,000 from January 2014. •Stamp duty exemptions for purchases up to $650,000 with the exemptions gradually phasing out between $550,000 and $650,000. •A $5,000 new home grant for all non-first home buyers of new properties up to $650,000 and new vacant land up to $450,000. AND Sherlock property promoter posted info on this forum here http://australianpropertyforum.com/topic/9615553/1/#new $15,000 first home owners grant for new homes priced up to $650,000. This reduces to $10,000 from January 2014. Stamp duty exemptions for purchases up to $650,000 with the exemptions gradually phasing out between $550,000 and $650,000. A $5,000 new home grant for all non-first home buyers of new properties up to $650,000 and new vacant land up to $450,000. Other states also continue to offer incentives to purchase as detailed below: Vic – stamp duty has been cut by 20% in 2011 with the cut increasing to 50% in 2014. Qld – stamp duty discounts of up to $7,000 for new homes from July 1st WA – no stamp duty payable on first home purchases under $500,000 and expenses of up to $2,000 are reimbursed for purchases of established homes only NT – concessions on stamp duty are available on the first $540,000 of the value of the home for first home buyers Australian Governments are encouraging First Home Buyers to take out loans up to $650,000, via promotion of grant conditions. Edited by Alec Smart, 23 Jun 2012, 12:42 PM.

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zaph	23 Jun 2012, 12:37 PM Post #6
Posts: 2,291 Group: Platinum Member Member #160 Joined: 05/12/2010	Strindberg 23 Jun 2012, 11:20 AM Made up libellous bollocks. does libel exist in Australia?

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Simon the likeable	23 Jun 2012, 12:40 PM Post #7
Posts: 105 Group: Gold Member Member #802 Joined: 01/07/2011	Oh dear, and they seem to be getting a tad naughtier too... Number of expelled mortgage brokers doubles to eight in past year: MFAA By Larry Schlesinger Friday, 22 June 2012 Eight mortgage brokers have been expelled by the Mortgage & Finance Association of Australia (MFAA) over the course of the 2011-12 financial year. This is double the number of brokers expelled in the previous year, with the majority of expulsions due brokers engaging in serious misconduct through submitting fraudulent loan applications to lenders. “The numbers of expelled members are minuscule compared with our total number of 11,200 members, however the number is still double those expelled in the 2010 financial year,” says MFAA chief executive Phil Naylor. http://www.propertyobserver.com.au/industry-news/number-of-expelled-mortgage-brokers-doubles-to-eight-in-past-year-mfaa/2012062155206

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Alec Smart	23 Jun 2012, 12:54 PM Post #8
Posts: 381 Group: Gold Member Member #1,579 Joined: 10/01/2012	Simon the likeable 23 Jun 2012, 12:40 PM Oh dear, and they seem to be getting a tad naughtier too... This is double the number of brokers expelled in the previous year, with the majority of expulsions due brokers engaging in serious misconduct through submitting fraudulent loan applications to lenders. http://www.propertyobserver.com.au/industry-news/number-of-expelled-mortgage-brokers-doubles-to-eight-in-past-year-mfaa/2012062155206 Fancy that Australian mortgage brokers committing serious misconduct by submitting fraudulent loan applications to lenders. Of course if you want to complain about banks, lenders or mortgage brokers in Australia check out the links below. ASIC - How to complain about companies or people - http://www.asic.gov.au/complain Money Smart - How to complain about financial services - https://www.moneysmart.gov.au/tools-and-resources/how-to-complain If you consider that your mortgage broker, lender or bank has demonstrated misconduct, go for it, make a complaint. Edited by Alec Smart, 23 Jun 2012, 12:55 PM.

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zaph	23 Jun 2012, 01:02 PM Post #9
Posts: 2,291 Group: Platinum Member Member #160 Joined: 05/12/2010	Simon the likeable 23 Jun 2012, 12:40 PM Oh dear, and they seem to be getting a tad naughtier too... Number of expelled mortgage brokers doubles to eight in past year: MFAA By Larry Schlesinger Friday, 22 June 2012 Eight mortgage brokers have been expelled by the Mortgage & Finance Association of Australia (MFAA) over the course of the 2011-12 financial year. This is double the number of brokers expelled in the previous year, with the majority of expulsions due brokers engaging in serious misconduct through submitting fraudulent loan applications to lenders. “The numbers of expelled members are minuscule compared with our total number of 11,200 members, however the number is still double those expelled in the 2010 financial year,” says MFAA chief executive Phil Naylor. http://www.propertyobserver.com.au/industry-news/number-of-expelled-mortgage-brokers-doubles-to-eight-in-past-year-mfaa/2012062155206 8 out of 11,200. it's a crisis i tells ya...

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miw	23 Jun 2012, 02:50 PM Post #10
Posts: 3,904 Group: Diamond Member Member #1,917 Joined: 22/04/2012	Alec Smart 23 Jun 2012, 12:33 PM Vic – stamp duty has been cut by 20% in 2011 with the cut increasing to 50% in 2014. Qld – stamp duty discounts of up to $7,000 for new homes from July 1st WA – no stamp duty payable on first home purchases under $500,000 and expenses of up to $2,000 are reimbursed for purchases of established homes only NT – concessions on stamp duty are available on the first $540,000 of the value of the home for first home buyers Australian Governments are encouraging First Home Buyers to take out loans up to $650,000, via promotion of grant conditions. Actually Qld gives a $7,000 grant to all FHBs on properties up to $750,000 and a separate concession on stamp duty for FHBs of up to $15k for houses less than $500,000. There is also a percentage concession for PPOR but not FHB that disappeared on Aug 1 2011 and will be reinstated on July 1 2012 which amounts to about $5k at $500k and stays at $5k above $540k. Nobody who doesn't want to needs to take advantage of these concessions. Of course the average Aussie is so much stupider than you that they can't work out what they can and can't afford and will drive themselves to financial ruin just so they can get the concessions.
	Last time I followed my dreams it led me to a casino, a bar, a gun shop, then a bank. Never again! AREPS™
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Alec Smart	23 Jun 2012, 03:26 PM Post #11
Posts: 381 Group: Gold Member Member #1,579 Joined: 10/01/2012	miw 23 Jun 2012, 02:50 PM Actually Qld gives a $7,000 grant to all FHBs on properties up to $750,000 and a separate concession on stamp duty for FHBs of up to $15k for houses less than $500,000. There is also a percentage concession for PPOR but not FHB that disappeared on Aug 1 2011 and will be reinstated on July 1 2012 which amounts to about $5k at $500k and stays at $5k above $540k. Nobody who doesn't want to needs to take advantage of these concessions. Of course the average Aussie is so much stupider than you, that they can't work out what they can and can't afford and will drive themselves to financial ruin just so they can get the concessions. Thanks MIW Great Australian First Home Buyers can receive a $7,000 grant on properties up to $750,000? All they need for a 80% LVR is $150,000 (20%) deposit. Or for a 90% LVR is $75,000 (10%) deposit. Or for a 95% LVR is $37,500 (5%) deposit. Or they could go for broke with a 100% LVR and $0 (nil) deposit. If true and factual a $7,000 grant for Australian FHB's on properties up to $750,000 looks like a very very very desperate stimulus strategy............ Come in suckers. Australian First Home Buyers - We Need You! Attached to this post: First_Time_Home_Buyers_Guide.jpg (32.42 KB) We_need_you.png (159.62 KB) Edited by Alec Smart, 23 Jun 2012, 03:47 PM.

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miw	23 Jun 2012, 03:34 PM Post #12
Posts: 3,904 Group: Diamond Member Member #1,917 Joined: 22/04/2012	Alec Smart 23 Jun 2012, 03:26 PM Thanks MIW Great Australian First Home Buyers can receive a $7,000 grant on properties up to $750,000? All they need for a 80% LVR is $150,000 (20%) deposit. Or for a 90% LVR is $75,000 (10%) deposit. Or for a 95% LVR is $37,500 (5%) deposit. Or they could go for broke with a 100% LVR and $0 (nil) deposit. If true and factual a $7,000 grant for Australian FHB's on properties up to $750,000 looks like very very very desperate stimulus strategy............ Mmmmmmmm............. It's been in place in Queensland in one form or another since about 2000, I think. I just missed out on it. Hardly a desperate stimulus measure. Lately it has tightened up because value caps have been introduced. FHBs in Qld mostly buy in the $250k-$400K bracket, especially since the extra stamp duty concessions for FHBs (over and above PPOR) go back to nothing above $500k and there are plenty of places available under $400k. $750k is a straw man with little relevance to reality.
	Last time I followed my dreams it led me to a casino, a bar, a gun shop, then a bank. Never again! AREPS™
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Alec Smart	23 Jun 2012, 03:40 PM Post #13
Posts: 381 Group: Gold Member Member #1,579 Joined: 10/01/2012	Thanks MIW for the information below. MIW stated " FHBs in Qld mostly buy in the $250k-$400K bracket, especially since the extra stamp duty concessions for FHBs (over and above PPOR) go back to nothing above $500k and there are plenty of places available under $400k". Can you let me know where buyers are purchasing homes for $250K in Brisbane??? Edited by Alec Smart, 23 Jun 2012, 04:00 PM.

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miw	23 Jun 2012, 04:07 PM Post #14
Posts: 3,904 Group: Diamond Member Member #1,917 Joined: 22/04/2012	Alec Smart 23 Jun 2012, 03:40 PM Thanks MIW for the information below. MIW stated " FHBs in Qld mostly buy in the $250k-$400K bracket, especially since the extra stamp duty concessions for FHBs (over and above PPOR) go back to nothing above $500k and there are plenty of places available under $400k". Can you let me know where buyers are purchasing homes for $250K in Brisbane??? There is a whole slew of 1B apts available between $250k and $300k. For $400k you can easily get a 2B apt in the inner west (which is a good area). Why don't you look it up for yourself?
	Last time I followed my dreams it led me to a casino, a bar, a gun shop, then a bank. Never again! AREPS™
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Ex BP Golly	23 Jun 2012, 04:34 PM Post #15
Posts: 2,258 Group: Platinum Member Member #1,951 Joined: 01/05/2012	Strindberg 23 Jun 2012, 11:20 AM Made up libellous bollocks. What? You are kidding? Surely? P---lease!
	WHAT WOULD EDDIE DO? MAAAATE!
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