Comments on: Mortgage Brokers Get The Final Dagger In The Heart

By: Jay

Jay — Sat, 28 Feb 2009 00:17:21 +0000

Brokers are such a small link in the chain and it is sad that they have had to carry the burden of recent happenings.

By: Lynne Thorp

Lynne Thorp — Thu, 26 Feb 2009 10:17:34 +0000

I have been an appraiser since the 1970′s–probably before most of the “bloggers” were born. I dont know why anyone is upset, surprised or shocked the market collapsed—it makes a correction every 10 +/- years, remember? Of course every bust cycle has a new villian–let me see, once it was the Savings and Loans, but the appraisers ended up being blamed for that one (the reason we now have licensing); then one cycle was Jimmy Carter recession/inflation/stagflation 20% interest rates debacle; the 94 Clinton meltdown; 2000 dot com bust followed by 9/11 2001. Each cycle had a completely seperate cause, but the one constant in every cycle is the only thing anyone remembers–housing prices collapse.

And please, if I hear one more appraiser whine about some other appraiser who did or didnt give someone a value on some property, and how unfair it all is, and it hurt business, etc, etc. Welcome to the adult world. Exactly which profession out there doesnt have it’s ethical issues as it is practiced? There will always be someone who will do anything for something!

But in this case, we all know the root cause of the current debacle—idiots like Barney Frank, Maxine Waters, Chris Dodd—–morons who cant even spell economics, and probably havent had a private sector job since high school, who were politically seduced by smooth talking, financially savey, more educated wall street con’s who stroked their egos by spounting the touchy feely socialist/communist dribble as in a house for every family whether you can pay for it or not garbage, that created the environment for fannie and freddie’s loosening of underwriting standards and loan programs.

Come on now—if you are allowing 100% financing to buy a home, at 4% interest—exactly what did anyone think was going to happen when 1) housing prices dropped even just a little? or interest rates raised, just a little? It doesnt take a rocket scientist you know!!

That is the saddest part of the current situation–the people in control are frankly, too ignorant to understand the dianamics of their actions.

Cheer up—-we finally are bottoming out—-and we can all look forward to the new boom cycle!!

By: Truett Neathery

Truett Neathery — Mon, 23 Feb 2009 18:34:55 +0000

Also, excluding Licensed appraisers allows Certified appraisers who have had their cert for 3 months can garner all the appraisal business in areas that have few conforming properties and would be misunderstood by inexperienced appraisers who were hired by price and speed. Same problems all over again, just a little farther down the road.

By: dan briant

dan briant — Mon, 23 Feb 2009 16:49:54 +0000

Greed is at the heart of the mortgage mess & the greedy mortgage brokers, along with the greedy real estate agents, geedy homeowners, greedy buyers and greedy sellers fed the greed of the greedy lenders and the greedy executives of these lenders and the greedy Wall Street brokers and greedy investors.

By: Kevin 2

Kevin 2 — Sun, 22 Feb 2009 21:19:34 +0000

Among the appraisers I know the one goal in starting your own business is to get on lenders list to avoid the pressure and lack of payment from brokers. I’m sure there is some honest one’s. But over the past 10 years I don’t think I came name more than 3 or 4 lenders or brokers that didn’t pressure you. Are you familiar with cut and pasters. Have run across several that were brokers and lenders. Where I am at the real estate agent told the loan org or broker who to use. If you killed a deal the agent to the lender I want refer my customers to you if you continue using that appraiser. Hell country wide was one of the absolute worse. Don’t feel bad brokers they have been wanting to rid of the apprasiers too. AVM’s and now BPO’s for foreclosures. When I first got into appraising my supervisor told me that once you start pushing value and not putting needed repairs down your name would get around quick and the local banks wouldn’t use you. Not anymore so many small town banks were acquired by the big nationals that a honest appraisal went out the door with sales and profit goals replacing. I have been very disillusioned for a long time. Have been trying to start a different business and get out. I currently utilize my appraisal skills for investing for myself. I was telling realtors in early 05 that the market was over supplied and starting to decline. Wouldn’t believe me. I got alot of satisfaction out watching alot of them loosing investment properties to foreclosure and going bankrupt over the past couple of years.

By: Dwayne

Dwayne — Sun, 22 Feb 2009 20:41:10 +0000

As an Appraiser, I too find it hard to feel sorry for the crooks in the mortgage broker field. These folks would put pressure on the appraiser for values as well turn times and have the nerve to withhold payments if there numbers were not hit. When the appraiser would not allow these crooks to prevail they would comp search until they find a weak or crooked appraiser to hit the number for them. I am happy to see them getting what they desrve. It’s the bad apples in the broker field that has spoiled it for the very few; I mean very few brokers with integrity.

If the brokers want to regain confidence with the puplic and other business professionals in the industry they should report the bad brokers instead of looking the other way. By looking the other way you have allowed your bad brokers to betray the publics trust.

By: Kevin

Kevin — Sun, 22 Feb 2009 04:25:20 +0000

While there are certainly some bad mortgage brokers out there who deserve to be run out of business, not all of them were bad. The same could be said about appraisers.

What burns me up is the banks with the help of some corrupt poltiticians and benefit of tax payers’ money that walk away scott free.

The problem of fraud will continue in a different form. Some of the appraisal management companies will now assume that role; we have already seen it with Wamu and E-appraise it.

By: Arnold

Arnold — Sun, 22 Feb 2009 01:04:34 +0000

The reason mortgage brokers are being taken out of the loop, is because of there influence over the valuation process. I’m an appraiser and I get an average of five calls a week from mortgage brokers looking for comp-checks. Definition of comp-check: Meet My Value!!! Mortgage brokers have no one to blame but themselves, and the appraisers who went along with their program.

By: Scott R

Scott R — Sun, 22 Feb 2009 00:40:55 +0000

As an appraiser who took a hit in 2003-2007 because I would not sell my integrity to mortgage brokers, I find it hard to feel sorry for them. I had dealings with small & large brokers who I had to almost stand on their windpipes to get paid, and in 2003-2004 had to write off 40% of my billings as uncollectable. Then caught “he double hockey sticks” because I wouldn’t “hit the number” and in fact, more than one broker used profanity at me because I would not “play the game”. I’ll be the first to admit, I’m not good enough to call a value within $1,000 (I’m thinking $84k but $85 makes the deal, as long as it is within the range of values), but when I thought $85 and the broker wanted $150, I just said NO. I know there were appraisers out there making good money by hitting any number for the mortgage hores who didn’t care about the people they were putting upside down (although borrowers have to take as much of the blame because they knew their homes weren’t worth what they were borrowing). Both the borrowers and the brokers wanted to just take their money and run. Real estate brokers & sales people were just as guilty as well when they were writing FHA loans with “down payment assistance” and FHA was taking these like a heart patient popping Nitro. I think the greatest thing in our business was when FHA “JUST SAID NO” to down payment assistance from sellers (no matter what the route). One “not for profit” program was raking in over $20,000,000/month in “processing” fees (can we say Jim & Tammy ?? PTL & pass the collection plate). Now that state licensing boards are suspending licenses (if they revoke, the culprit can just go through licensing process again, that’s why a 50 year suspension is not atypical anymore), our industry is finally righting itself. Sometimes it just takes a million pound doo doo hammer to get the point accross that fraud in securities (which starts with fraud/errors in mortgage origination/lending process) has to stop. Until investors have faith in the ENTIRE process, the “credit lockup” isn’t going to go away.

By: Mike W

Mike W — Fri, 20 Feb 2009 16:57:22 +0000

In regards to Phil C post…Phil what your reffering too is correspondent business…that is not broker business. Allot of people don’t know the difference.

A correspondent closes the loan on thier own warehouse line…sends the loans in review (dotting the i’s and crossing the T’s as you say) after the loan is closed, and then you correct if fruad is found the correspondents warehouse line is charged back for the loan so they have as much incentive as the lender does to keep the loans running. Brokers just send in the loan to the bank..the bank fully underwrites the loan and does all kinds of third party checks to insure quality, if something goes wrong the only thing that happens to the broker is thier broker ID is closed… then they go to the next bank until someting happens there. Trust me i have been involved with tracking down brokers for years.

I as mentioned in my response fraud is not the main issue for these moves…it a capital thing not a quality thing.

By: Phil C

Phil C — Fri, 20 Feb 2009 02:02:41 +0000

I am not sure where the majority of the posts have gotten their infomration but a fradulent loan originated by a mortgage broker that causes a default with the lender in the first 12 months MUST be purchased back by the mortgage broker. That is how I am SURE most brokers do not submit fradulent loans to lenders. It all goes back to the lender underwriting said loan and dotting its’ i’s and crossing its’ t’s. If this was done ny the lender there would not be ANY fradulent mortgages being pushed through the lending process.

By: Chris K

Chris K — Tue, 17 Feb 2009 17:36:58 +0000

Good loan officers that currently work under mortgage brokers will move to the banks. Good mortgage brokers will shut their doors, and likewise seek employment with large lenders. Meanwhile, bad loan officers will continue to exist, also working with major lenders because they have federal charters that effectively shield them from legal exposure. Long story short, competition decreased, consumer costs increase, and the big banks win.