Mortgage Brokers to Blame for Mess?
mortgage refinance brokers getting a lot of heat!
It seems that mortgage refinance brokers, not direct lenders, are catching a lot of bad heat for the current mortgage mess that this country finds itself in at the moment. And why not, after all mortgage brokers were the ones who wrote 80% of the loans in recent years. Howver, let’s not forget, that it is the BANKS that really make the guidelines what they are. The banks, not the mortgage refinance brokers, are the ones who come out with the new programs. Mortgage brokers just sell whatever they have available to them.
So, the banks really created this mess. An argument may be that mortgage refinance brokers should not have sold the “bad” products, but then the banks would probably have tried to dissassociate with them, because those bad, risky loans accounted for almost 60% of the loans written from 2000-2006! So, in essence, although mortgage brokers and bankers are definitely not totally innocent, they were not the originators of the bad mortgages.
Nevertheless, there obviously has to be a scapegoat, so the little guy takes the fall. It is a tough time right now to be a third party lender in America. With all the new rules and regulations, it is no wonder that many of the mortgage brokers have already jumped out of this business. Below, I have a short video, no it is not mine, or me, but a fellow mortgage broker, who talks about our business in depth:
« Mortgage Refinance Rates Drop Again …for Now! | Home | What about HIGH Mortgage Rates? »
Leave a Comment