Thursday, October 25, 2007

If Realtors® are regulated...what about the Mortgage Brokers and Loan Officers?

Yesterday I was reading a post by Thomas Weiss entitled Wow!! Mortgage Lenders Are Really getting Tough!!
When I saw the title I really didn't think too much into it. Then I started reading and he mentions how lenders seem to be getting tough on which mortgage brokers and loan officers they want to deal with.
Please help me out here...don't you think there should be some broader requirements?

He mentioned how his principle Broker asked him to fill out a long detailed resume on himself and his past work and his achievements. A bit puzzled he asked her why and she said that she was signing up with INDYMAC BANK and they wanted full resumes on all of the brokers who would do business through them. I think they should be tougher...maybe not with that process but with something similar that might make that person think before representing a product they believe in...only to find fault else where when there are problems.

I not only found the article interesting...fresh and had probably never been mentioned before but I also thought it was somewhat of a good idea. From what I know about the mortgage industry and correct me if I'm wrong...loan officers and mortgage brokers are some what limted as far as how regulated their positions go.

This is not about any particular bank.... but it just dawned on me....if I am a Realtor® and I am required to protect the public and I am required to have a certain amount of education requirements and have to keep them up to date every 2 years after my first initial renewal then how come the mortgage industry does nothing to weed out as many of the ones who hurt the reputation of the good ones out there? Maybe I'm not correct but isn't there something they do to screen the people that operate in their business?

How many times have you heard the story that the buyer was at the closing table only to find out the loan product changed their interest rate? Is this because they didn't read the documents they signed correctly? Or did they just care not to listen? The point is when it does happen they have a choice basically close or not to close. But beyond that...where is the blame and what can they do?

Even if the requirements I need are a bit silly...at least they are willing to make sure they get rid of as many of the bad apples out there or at least try to make it more difficult for them to operate. This 2 year requirement is really just to keep us updated on any new laws or changes to those laws. And maybe it even helps re-educate and refresh some who forgot the basics. For what ever reasons there are...we are still required to keep our education updated. So where did this lead me to?

One of the biggest problems I have is if they authorize a part of the clauses in our contracts then how can they not be a party to the contract when all falls through due to their misinformation? If I screw a deal up and it was my fault...don't you think I could be reprimanded for it? I sure can. How can they possibly not be a party to the contract? They are!

I just think that if our industries have to work together and we are all involved in a transaction then where is the protection for the consumer when it comes to the loan process?



4 comments:

Bob Carney said...

[Sound of barn doors closing]

Do you really think it's time? LOL

Nealb63 said...

Thanks Bob..you could be right!

Matthew J. Blum said...

Neal, This is just a feel good feel good feeling the lender is doing. The truth of the matter is when you sign an agreement with any lender (Yes I have signed many of them)the Broker of Record agree's to watch everything and is responsible if the loans are bad. Now if they really wanted to do something then every Loan Officer Should be made to be licensed.

Nealb63 said...

Matt,
I have to agree since I wouldn't know behind the scenes. I just wish the other detractor would understand that this post has nothing to do with bashing you ...him or youre industry...we need to find a solution to a problem or we cannot work together in harmony...that's all. I didn't look for a fight...he did.
Thanks!