Comments on: Are Mortgage Brokers An Endangered Species?

By: Commercial Real Estate St George

Commercial Real Estate St George — Mon, 28 Jul 2008 17:36:04 +0000

With the mortgage crisis that is going on in the country today with a lot of people being in trouble with their loans the government is going to make it a lot harder on the mortgage and lending industry. Thus there will be more stipulations and conditions when applying for loans.

By: phoenix area mortgage brokers becmong extinct | Wexzilla - Phoenix | Scottsdale Real Estate

Sat, 26 Jul 2008 13:45:15 +0000

[...] Industry guru, Rob Blake wrote asked … are Mortgage Brokers are an endangered species? [...]

By: Rob K. Blake

Rob K. Blake — Mon, 14 Jul 2008 14:03:08 +0000

Thanks Colin,

Some street level proof…perfect!

By: Rob K. Blake

Rob K. Blake — Mon, 14 Jul 2008 14:01:44 +0000

Oh, don’t get me wrong the guys on Wall Street paid the price for over-leveraging the CMO’s that took a bad bet and made it exponentially worse.

The guy on the street who filled the box…that was the banks themselves. Sure the traders should have looked in the box, saw what was being sold to them before leveraging it and selling it around the world. And they probably did. But once again, the banks made it so profitable the “blind-eye” was as predictable a Wall Street reaction as it was a mortgage broker reaction.

Banks are at the core of this and the proof will be as I said above, when the dust clears and nobody can get a mortgage from any source other than a bank…and of course, when investment firms, wholesale lenders, private mortgage insurance companies, etc…have their fair share of bankruptcies…yet no major depositor bank does.

There is more going on here than meets the eye. There is power grab in regulatory authority where the Fed is trying to usurp the Treasury, the SEC, OFHEO, HUD, The Comptroller of the Currency, and the mortgage crisis is handing them the opportunity.

If they win, banks win. It’s that simple. And they will win by pointing out the “fact” that investment firms, GSEs, wholesale mortgage lenders, and some non-depositor banks, all needed “bailing out” or actually went under. They can then point to the entities under their control – depositor banks – and say, “Look what we were in charge of is fine. Put us in charge of all of it and you’ll never have another debacle like this again”. And sadly that might just work…

Thank goodness for blogs and comment sections so I can come back in 3 years and say, “I told you so…”

By: Colin - Buying Florida Property

Colin - Buying Florida Property — Mon, 14 Jul 2008 13:52:02 +0000

Don’t know whether the banks engineered this or not – but they do seem to have a much bigger stranglehold on the market than they did before. Brokers we contact are nervous and find it very difficult to arrange financing quickly but our banks are more seem to be even more arrogant than previously.

By: Mortgage Advisors

Mortgage Advisors — Mon, 14 Jul 2008 13:23:25 +0000

Have to agree with Brock here, the banks did not ejngineer this. The Harvard boys got suckered with one of the oldest street selling con tricks going. Guy opens a stall selling stuff in boxes,you bid and gamble on what is in the box. Except the guy in the street had mixed all the bad debt with the good debt and bingo.

By: Brock

Brock — Mon, 14 Jul 2008 12:23:52 +0000

Rob,

The Emirates have cash and know to buy stock during a downturn. Buy low, sell high. It’s not complicated.

Sheesh. Can we get back to REI tips & practices? These “high brow” posts are mostly a waste of time.